The U.S. dollar weakened against majors, on optimism in markets that started last week, more specifically, after the release of the GDP in the U.S. which came better than expected. Investors have now more risk appetite on speculations their economies are recovering. On the other hand, large companies and banks are still releasing their earnings, which are coming better than analyst's forecasted.
The euro-dollar pair is showing an incline for the third day and on the 4-hour charts, according to Stochastic Oscillator momentum indicator which is now moving in an overbought area. Today, PMI Manufacturing in the euro zone came better the previous and the anticipated readings. Data starting from the second quarter are showing that the economy is on the right track of recovery. Meanwhile, the euro is traded at 1.4345, recording a high of 1.4354 and low of 1.4205, along with support at 1.4285 and resistance at 1.4354.
Relative to the pound-dollar pair, it is also showing an incline on the 4-hour charts and moving in an overbought area. On Monday, U.K. released its PMI Manufacturing showing expansion for the first time since March 2008, exceeding the 50 barrier. The upbeat data is providing a cheerful outlook for the economy. So far, the pound is being traded at 1.6830 reaching a high of 1.6877 and a low of 1.6692 with support at 1.6778 and resistance at 1.6877.
With regards to the dollar-yen pair, it is inclining on 4-hour charts, according to the Stochastic Oscillator indicator. Optimism in markets is enhancing demand on higher-yielding currencies, therefore reducing the appeal of the yen as a safe have currency. Now, the yen is traded at 95.00 hitting a high of 95.07 and a low of 94.57, along with support at 94.84 and resistance at 95.18.
