The dollar is consolidating

Consolidation was witnessed in today's Asian session ahead of important fundamentals to be released from the U.S showing the last updates in the labor market. The USDIX recorded a high of 77.30 and a low of 77.08.

The euro dollar pair inclined slightly recording a high of 1.4547 and a low of 1.4502, having the 16 nation's currency trading around 1.4545. Yesterday the pair fell from the 1.4650 levels back to the 1.4515 levels after fundamentals showed that retail sales in Germany, the euro zone's largest economy, declined besides inclining unemployment rate in the euro area which pressured the pair. Today the pair is having a resistance at 1.4585 along with a support at 1.4500. However, the pair is trading in an oversold area according to the four hours momentum indicators.

Regarding the pound dollar pair, it is consolidating between 1.5930 and 1.5875 recording a high of 1.5927 and a low of 1.5881, having the royal currency trading around 1.5910. The pair is having a resistance at 1.5990 along with a support at 1.5845. If the pair breached the resistance it will target 1.6045. However, the pair is trading in an oversold area according to the four hours stochastic oscillator.

As for the dollar yen pair, it is currently consolidating between 89.60 and 89.15 recording a high of 89.58 and a low of 89.20.The yen gained after reports today showed that jobless rate in Japan declined to 5.5% and household spending gained 2.6% which supported the yen before it start falling back.

The pair is having a support at 89.00 along with a resistance at 89.85. In case the pair broke the support we may see it trading near the 88.55 levels. The unemployment rate in the U.S will be released today, besides the change in non farm payrolls and factory orders and they will move the market on release. Yet, the stochastic oscillator on the four hours charts is supporting the downside.