Dollar's Widespread Gains

The U.S. dollar came back yesterday against major currencies supported by the better than expected consumer confidence for July, this provided the U.S. dollar with the needed momentum to acquire widespread gains, which were also supported by gains in U.S. stocks and the drop in oil prices.

The Euro Zone economy seems to have been softening lately and that could as well leave the ECB in a tough position, as they aim to battle rising inflation threats but their economy is starting to show signs of emerging weakness!

The Euro continued to slide against the U.S. dollar today to follow this week's strong trend for the U.S. dollar, the Euro is now trading around the 1.5583 level which represents the 61.8% correctional level for the last upside wave, should that level provide the Euro with the needed momentum the pair should be able to rise back to the 1.5668, however if the 1.5583 was breached the pair will continue its downside wave to the support level at 1.5516, the Euro recorded a high of 1.5599 and a low of 1.5559 against the dollar so far today

The Pound also dropped against the U.S. dollar yesterday after the pair breached the critical level at 1.9874whcih represented the main support for the upside channel which also the 38.2% correctional level, and the pair is trading now around the 1.9781 level which could hold the pair from dropping further, however if that level was not able to provide the pair with the needed upside momentum, the pair will continue its downside wave to reach the 1.9730s strong support, the pair recorded a high of 1.9821 and dropped to set a low of 1.9768.

The U.S. dollar extended its gains against the Japanese Yen as investors increased their USD/JPY carry trades, which took the pair to breach the 108 levels its highest level since 5 weeks, the pair acquired strong upside momentum from near the 107.80 support level to indulge in a strong upside wave that is targeting the 108.40 levels, given the pair can maintain trading above the 108 psychological barrier. The USD/JPY pair recorded so far today a high of 108.21 and a low of 107.86.

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