The Japanese yen and U.S. dollar surged against higher-yielding currencies after German business report released earlier today drooped unexpectedly in February ahead of U.S. consumer confidence report due later on today. The dollar index, which tracks the dollar movements versus a basket of major currencies, inclined to 80.72 from the day's opening at 80.54, paring its earlier decline today.
With regard to the euro-dollar pair, it is showing a slight decline, reversing its earlier gains, to continue the downside trend that started since the beginning of December, where the 16-nation currency is currently traded at nine-month low versus the dollar. German IFO business climate slipped for the first time in 11 months to 95.2, below estimates of 96.1. Now, the pair is traded at 1.3549 after reaching a high of 1.3691 and a low of 1.3542, where the coming support is seen at 1.3525 then 1.3485 and next resistance is at 1.3655.
As for the sterling-dollar pair, it fell on the daily charts after reaching a high of 1.5574. The pair is still not able to rebound from the bearish direction that started since mid November. Now, the pair is traded at 1.5432, recording a low of 1.5391, while it is moving between support at 1.5380 and resistance at 1.5485.
Relative to the dollar-yen pair, it is showing a decline on the daily and 4-hour charts. Meanwhile, the pair is traded at 90.76, reaching a high of 91.29 and a low of 90.56, while it is moving between support at 90.55 then 90.10 and resistance at 91.40. The pair is heading to strong support at 91.33 which represents 38.2% Fibonacci retracement to the upside trend that started in December.