Dollar (USD) Bullies Euro (EUR), But Falls Against Pound (GBP) and Yen (JPY)
The world’s leading currency managed to gain against the Euro but fell against both the Yen and the Pound, trading at five week lows against the Yen before the FOMC rate decision whereas expectation shows that the Fed will preserve its bank lending rate at record lows among 0.0% - 0.25%.
The U.S Dollar Index; which measures the performance of the Green Benjamin against six major currencies including the Euro, Pound and Yen inclined in today’s trading session, whereas the index opened at 78.455 to trade at 78.607 after reaching the highest levels for today at 78.704 and the lowest at 78.369.
The euro-dollar pair is declining on the daily scale where it breached yesterday’s support levels at $1.4067, where the pair attempts to reach the upcoming targets at $1.3996 which is considered a support level. Meanwhile, the pair is trading at $1.4036 and declining, but overall activity shows a slight rebound to the upside, but not exceeding the previously mentioned support level that turned into resistance. Fluctuations are expected in trading as the FOMC rate decision closes. The pair’s upcoming support and resistance levels are set at $1.4000 and $1.4140, respectively. Meanwhile, the pair managed to reach the highest point at $1.4096 and the lowest at $1.4019.
As for the sterling-dollar pair, it continues to trade in sideways over the past three days where the pair breached the resistance levels at $1.6159 and rising as indicated on the Stochastic and RSI Oscillator. Meanwhile the Momentum indicators are nearing an overbought area therefore a slight decline is expected for the pair but requires trading to remain below $1.6265 levels. Meanwhile, as the pair trades above these levels at $1.6168, a reverse trend to the upside over the short term is expected to last but trading will also be affected by the rate decision by the Federal Reserve. The upcoming support and resistance levels for the pair can be witnessed at $1.6150 and 1.6205, respectively. Meanwhile, the pair managed to reach the highest point at $1.6243 and the lowest at $1.6105.
Finally talking about the USDJPY pair, the pair declined on an intraday basis and attempted to breach the support levels of the ascending channel at $89.15. Meanwhile the pair is expected to incline slightly as a correctional move as the pair trades in an oversold area on various indicators. The pair is trading at $89.51 where the intraday projections indicate a persistent downside trend. The pair managed to reach the highest levels for today at $89.71 and the lowest at $89.12 while the upcoming support and resistance levels for the pair can be witnessed at $89.00 and $90.45, respectively.
