The euro and the pound dropped in today's Asian session after yesterday's gain on concerns about the strength of recovery, especially after Dubai's credit troubles that encouraged traders to turn to the low yielding currencies. On the other hand, the yen inclined extending its gains against the dollar.
The euro dollar pair declined recording a low of 1.4698 and a high of 1.4759, having the 16 nation's currency trading around 1.4715. The pair is having a support at 1.4675 along with a resistance at 1.4770, and if the support was breached, we may see the pair falling back to the 1.4610 levels. Today the ECB will publish its monthly report about the economic situation that will affect the pair's trades. Yet, the pair is trading in an oversold area according to the daily momentum indicators.
As for the pound dollar pair, it declined as well recording a low of 1.6237 and a high of 1.6321, having the royal currency trading around 1.6250. Today the pair is having a support at 1.6170 along with a resistance at 1.6310, and the pair may show further declines according to the daily momentum indicators, which is supporting the downside, so we might see the pair breaking the support and trading near the 1.6100 levels. The BOE will announce its rate decision today and it tends to move the market.
Finally, the yen continued to gain against its American counterpart to record a low of 87.72 and a high of 88.37, and currently the pair is trading around 87.80. The pair is having a support at 87.10 along with a resistance at 88.45, and the pair is anticipated to show further declines according to the daily momentum indicators, to break the support and fall back to the 86.60. Yet, Fundamentals concerning the U.S trade balance and initial claims should be seen today and it tends to move the market on release.