Investors are bullish on the Dollar where expectations show that the Dollar will rise over the upcoming six months on speculations that the U.S economy will recover over a faster pace than Europe and Japan, despite the fact that the outlook for global growth declined for the second consecutive month.
The Dollar continues to benefit from Greece’s debt problems as it surged to its highest levels since May against the 16-nation currency as the high deficit Greece is facing will affect the GDP for the entire E.U region, not forgetting that the Fed and the ECB continue to preserve the benchmark interest rate at their record lows in order to boost growth, but expectations show that the Fed will raise its benchmark rates before ECB and BoJ thus putting more pressure on global growth to follow the pace of improvement that is witnessed in the world’s leading economy.
As for the Yen, it declined against high yielding assets as China’s exports rose the most in three years, thus investors turned towards high yielding assets and dumped the Japanese Yen along with low yielding assets.
As for the U.S Dollar Index, it’s currently trading in a narrow range where it's slumping slightly on the daily scale, as the index is trading at 80.563 compared with the opening levels of 80.589 while the index reached the highest for today at 80.859 and the lowest at 80.313.
The euro-dollar pair is gaining on the daily scale, while it's dropping on the four hour scale as it failed to breach the resistance at $1.3684 as it's currently trading at $1.3641, the pair is projected to slump on the four hour scale reaching the support levels at $1.3610 as it's currently trading in an overbought areas on the Stochastic Oscillator, the pair managed to reach the highest point for today at $1.3679 and the lowest at $1.3542, meanwhile the bearish trend is projected to continue throughout today’s trading session with targets set at $1.3525 and $1.3430 but in order for those expectations to prevail, levels at $1.3685 must remain intact, as for the upcoming support and resistance levels, they are set at $1.3585 and $1.3670 respectively.
Moving to the Sterling, the pair continued to slump for a third consecutive day, where it's currently trading at $1.4951, compared with the opening levels of $1.4993, meanwhile the pair is dropping on the four hour scale, but a slight correctional move is projected for the pair to reach the resistance at $1.4986 before continuing with the drop to target $1.4850, but levels at $1.5095 must remain intact for these expectations to prevail, the pair managed to reach the highest for today at $1.5014 and the lowest at $1.4870, while the upcoming support and resistance levels can be witnessed at $1.4900 and $1.4990 respectively.
Finally talking about the USDJPY pair, expectations show that the pair will descend on intraday basis, supported by the negative signs that are provided by the momentum indicators despite the fact that the pair pushed strongly upwards and breached a pivot resistance levels at $90.10 whereas for expectations to fail, the pair must breach the strong resistance at $90.60 and achieve a four hour closing above those levels. The pair is currently trading at $90.50 while managed to reach the highest levels for today at $90.82 and the lowest at $89.82, as for the upcoming support and resistance levels, they can be witnessed at $90.10 and $90.85 respectively.
