The green currency and yen fell after the release of stellar U.S. data which came better than forecasts. The manufacturing data in China, U.S., and Europe released today provided evidence that world economies are recovering which spurred demand on higher-yielding currencies. The dollar index, which tracks the dollar movements against a basket of major currencies, slumped to 75.97 from the opening at 76.34.
As regards to the euro-dollar pair, it is inclining on the daily and 4-hour charts. The euro zone released its manufacturing data where PMI spiked to the highest level in 21 months in October. The euro inclined after the news but jumped after the optimistic U.S. data. Meanwhile, the euro is traded at 1.4827 recording a high of 1.4843 and low of 1.4681, where the pair is supported by 1.4815 then faces the coming resistance of 1.4840.
As for the sterling-dollar pair, it is showing a slight decline on the daily charts despite the buoyant PMI manufacturing which showed growth exceeding the 50 barrier. However, on the 4-hour and 1-hour charts the pair is inclining. So far, the pound is trading at 1.6392 setting a high of 1.6477 and a low of 1.6326; while the coming support for the pair is seen at 1.6360 and the resistance is spotted at 1.6405.
With regard to the dollar-yen pair, it is showing a clear upside tendency over daily and 4-hour basis. The pair breached the strong resistance at 90.28 which represents 23.6% Fibonacci retracement for the downside trend that started on August 10. Now, the pair is trading around 90.47 after hitting a high of 90.69 and a low of 89.16; while the pair is currently facing the coming support level at 90.28, while the resistance is spotted at 90.60.