The Dollar Recovers Lost Ground
EURUSD
The EUR/USD is consolidating near its current highs, that is natural after such explosive growth. The bulls are not able to overcome the 34th figure so far, but also there from the down side, the pair’s movement is limited by the support at 1.3336. As a result of the single currency increase, the RSI on the 4-hour chart entered the overbought zone, and it starts moving out of it due to the consolidation. The sentiment is still bullish, but it is wise not to rule out the correction towards the 33rd figure where buyers are likely to activate. The increase above the 34th figure would allow the to test last year’s high near 1.3480.
GBPUSD
Yesterday, the situation was not in favor of the bulls in the GBP/USD pair. The British pound also came under pressure together with the U.S. dollar as well, due to sales in the cross rate with the euro. As a result, there on the way to the level of 1.6160, the GBP/USD was at the mercy of bears, that caused a drop in the exchange rate to 1.6031. Here was an increase in demand for the pound, and it manged to recover to 1.6093. The pair remains under pressure, but if the bulls manage to defend the support near 1.6030 — 1.6000, the resistance at 1.6170 will be under threat once again, and in case of its breakthrough, the pound will resume its growth towards the 63rd figure.
USDCHF
Active buying of the EUR/CHF continued yesterday too, that allowed the USD/CHF pair recover lost ground. Thus, having found the support at 0.9119, the USD/CHF started increasing until it reached the resistance at 0.9262. This time, there on the 4-hour chart the pair left the oversold zone and it could resume the decrease. But the increase above the 92nd figure would slightly improve the prospects for the dollar, and this time, bears need to return the pair below this level again to be able to break below the support at the 91st figure. The growth and ability of the dollar to consolidate above 0.9300 would significantly weaken the bearish pressure on the pair.
USDJPY
The sales of the yen contributed to the USD/JPY pair’s increase, up to the level of 89.64. Here, the pair bull faced a decent resistance, which at this stage could not constrain their onslaught. This provoked the players to take profits, causing the dollar to drop to the support level at 88.62. The Dollar/Yen pair’s state of being overbought involves the development of a downward correction, but it’s difficult to determine its scope, given that the previous attempt from 88.40 didn’t receive its development. The pair felt the support so far, from which the bulls will try to resume the dollar’s increase, but if this support doesn’t stand, then the rate will drop to 88th figure.
