The dollar hits its lowest this year

The green currency continued its downside trend; touching its lowest level in 2009 versus a basket of major currencies, on a better outlook for the economies, which had spurred demand in higher-yielding and riskier assets. Retail Sales' report in the U.S. showed the best figures since 3 years, marking that the worst being over. Meanwhile, the dollar index is at 76.27 from the opening at 76.53, ahead of the release of important U.S. data that will be released later on today.

The euro-dollar pair is moving sideways in an overbought area, as seen on the daily charts, according to the Stochastic Oscillator momentum indicator. However, on the 4-hour and 1-hour charts; the pair is showing a decline in a preparation for a downside correction. Today, euro zone released its CPI for August, showing improvement on the month, while remaining steady on the year. The European single currency hit its highest in a year, versus the dollar today. Meanwhile, the euro is traded at 1.4683, recording a high of 1.4713 and low of 1.4654, where the pair is supported by 1.4685 and faces the coming resistance of 1.4708.

The sterling-dollar pair is inclining on the daily and 4-hour charts. Today, the U.K. released its ILO unemployment; showing a rise to 7.9% from 7.8%, which is less than forecasts of 8.0%.  So far, the pound is traded at 1.6507, setting a high of 1.6519 and a low of 1.6430; while the upcoming support for the pair is seen at 1.6485, and the resistance is spotted at 1.6519.

However, the dollar-yen pair declined again on the daily charts, after rising for two days, to continue its downside trend that started on August 10. Today, the greenback touched its lowest in seven-month versus the yen. Now, the pair is trading around 90.29, after hitting a high of 91.17 and a low of 90.10; while the pair is currently facing the coming support level at 90.10, while the resistance is spotted at 90.36.