The dollar continued to loose its strength

The dollar continued to loose its strength against counterparts on Wednesday after Chinese officials signaled plans to diversify the nation’s reserves to more stable currencies. Investors are starting to fear that the Dollar is loosing its status as the worlds leading currency. In addition to the higher prices in European currencies, the dollar continued its freefall against the Canadian Dollar, sending it to $0.9054, while the Australian Dollar received a boost from the 0.25% interest rate hike. The recent down trend in the dollar is characterizing a “snow-ball” effect; as more and more traders are jumping on the ride ignoring any good data that could signal even a slight dollar rally. The low value of the dollar continued to attract commodity buyers, sending gold to $845.55 and Crude oil above $98 per barrel in electronic trading.
The economic calendar is packed today with important data, including two interest rate decisions. Currency traders are expecting both banks to leave rates unchanged, therefore, eyes will focus on the statements that are normally published along with the decisions. Technical traders are hoping that today’s outcome will show more of a clearer picture regarding the dollar’s short term future, as dollar charts have been showing signs that the currency is oversold. 

Euro | Japanese Yen | British Pound | Swiss Franc

  
 
Euro
 
The Euro continued its path up throughout most of the session, opening in Asia at $1.4554 while closing the session at $1.4636. Volatility was high, allowing this currency pair to trade within a174 pip range, touching an intraday high of $1.4730. Volatility will continue to remain up today, as traders will want verification regarding the Euros’ recent rally.

Support: 1.4600, 1.4550, 1.4500 
Resistance: 1.4700, 1.4750, 1.4800 
 
Euro | Japanese Yen | British Pound | Swiss Franc

  
 
Japanese Yen
 
The weakness in the dollar continued to encourage carry trade investors to cash in their profits, sending the Japanese yen below 113. Today’s decision will continue to effect this pair, either giving it support around these current levels (as seen in the past) or sending it lower due to carry trade unwinding.

Support: 112.80, 112.50, 111.70 
Resistance: 114.00, 114.70, 115.20 
 
Euro | Japanese Yen | British Pound | Swiss Franc

  
 
British Pound
 
Similar to the Euro, the Pound touched its highest point against the dollar, since May 1981. Currency yields are continuing to attract money to this currency, while the dollar’s weakness is only adding to the rally.

Support: 2.0950, 2.0870, 2.0820 
Resistance: 2.1050, 2.1100, 2.1150 
 
Euro | Japanese Yen | British Pound | Swiss Franc

  
 
Swiss Franc 

Support: 1.1300, 1.1250, 1.1200 
Resistance: 1.1400, 1.1450, 1.1500