The U.S. Dollar Rebounds

The green currency rebounded today, after falling for six days in a row on technical movements, since it became oversold. The dollar index, a gauge of the dollar's strength against a basket of major currencies, rose today to 76.99 from the opening at 76.61. The Index inclined near 0.5% today, retracing some of its losses, worth mentioning that it declined more than 5% this year.

The euro-dollar pair is overbought on the daily charts, as indicated by the Stochastic Oscillator momentum indicator and it is doing a downside correction. In addition, on the 4-hour and 1-hour charts, the pair is showing a decline. Today, euro zone released its Industrial production for July showing decline on the month and increase on the year, while employment change came higher than the previous reading. The euro retreated today from 9-month high versus the dollar. Meanwhile, the euro is traded at 1.4529; recording a high of 1.4607 and low of 1.4514, where the pair is supported by 1.4520 then 1.4509 and faces the coming resistance of 1.4550.

The sterling-dollar pair is also correcting from an overbought area on the daily charts, according to the Stochastic Oscillator. The pair is also showing a downside tendency on the 4-hour and 1-hour charts. Today, there are no fundamentals from the U.K. and therefore the sterling is expected to follow the general trend in the market.   So far, the pound is traded at 1.6523 setting a high of 1.6690 and a low of 1.6519; while the coming support for the pair is seen at 1.6492 and the resistance is spotted at 1.6550.

The dollar-yen pair rebounded today from an oversold area on the daily charts. The pair rebounded from the downside trend that started on August 10. Last week the dollar touched its lowest in seven-month versus the yen Now, the pair is trading around 90.85, after hitting a high of 90.88 and a low of 90.18; while the pair is currently facing the coming support level at 90.65, whereas the resistance is spotted at 91.00.