The yen fell against the dollar and the euro for the third day as optimism increased among the market participants, raising their demand for higher yielding assets and pushing the Asian stocks up. The dollar index traded today between the highest 83.99 and the lowest 83.70. The index now trades around 83.90.
The limited ranges in which the currencies moved this week might be broke these two days, as market await the ECB’s and BoE’s rate decision today as well as Trichet’s press conference following the decision announcement, which might bring some surprises and create volatility in the currency markets.
The euro against the dollar traded during the Asian session between the highest of 1.2687 and the lowest of 1.2624. Now the pair is trading around the 1.2653 level, between 1.2610 and 1.2700. The four hours and daily momentum indicators show the pair is within an overbought area; however, this might not stop the pair from rising today if it finds enough momentum from today’s news. If the pair breaches the resistance at 1.2650 it might head towards the next target found at 1.2780.
The pound against the dollar traded during the Asian session between the highest of 1.5227 and the lowest of 1.5175. Now the pair is trading around the 1.5185 level, between 1.5070 and 1.5220. The four hours and daily momentum indicators show the pair is within an overbought area. The resistance kevel 1.5220 remain intact and stops the pair from rising further, at the same time the pair faces a strong support level found at 1.5070.
The dollar against the yen traded between the highest of 88.45 and the lowest of 87.79. Now the pair is trading around the 88.32 level, between 87.70 and 88.90. The daily indicators show the pair is within an overbought area; however, the mixed signals seen in the indicators may disrupt the pair’s upside movement.