After major currencies were soaring in the markets from the optimism, today the scenario has reversed as risk averse investors are in the markets seeking lower yielding assets while selling higher yielding assets, in fears that the global recovery will take longer than anticipated. Looking at the Dollar Index, which gauges strength of the dollar against six major currencies, is currently inclining trading at 84.35 while recording a high of 84.36 and a low of 84.00.
The euro zone released its first quarter final reading which showed that the nation continued to grow at 0.2% which was highly expected in the markets, the release of the data did not support the data while we continue to see that the euro is slipping in markets. The euro dollar pair is currently trading at 1.2574 between the support of 1.2505 and the resistance of 1.2605 while recording a high of 1.2633 and a low of 1.2555. The daily charts are showing us that the pair is being traded in an overbought area.
Turning to the pound dollar pair we see they are currently trading at 1.5107 while posting a high of 1.5159 and a low of 1.5079, the technical charts are showing us that the pair is being traded in an overbought area as currently there is a support at 1.5000 and a resistance at 1.5170. The momentum indicators are providing us with a bearish wave.
Since investors are currently more interested in lower yielding assets, this is supporting the yen to rally past the dollar while the pair is currently trading at 87.18 between the support of 86.40 and the resistance of 88.00 while recording a high of 87.67 and a low of 87.00.