Dollar Strengthening Ahead of Bernanke's Speech

The dollar after falling yesterday, today it is picking up on its losses as the U.S. economy is fundamental free while the focus today remains on the Federal Reserve Bank Ben Bernanke speaking about financial stability. The speech will either keep the dollar rising in the market or deteriorate it as investors turn pessimistic about the financial markets in the U.S.

The Euro Zone released its industrial new orders for the year ending in June coming in at -7.4% lower than both the projected reading of -6.3% and the prior reading of -4.4% further weighing on the economy as it causes to euro to lose strength in the market. The single currency lately has been deteriorating as the state of the European nation has been pressuring the euro to record more losses. Using the momentum indicators we see that it is providing us with a downside direction as the euro could not breach the resistance of 1.4960 as it is currently trading around the support of 1.4810 at 1.4832, and if it breaks that support it will heads towards the next support of 1.4772. The EUR/USD recorded a high of 1.4894 and a low of 1.4824.

As for the pound, like the euro lost momentum in the market after the UK economy released its GDP figures showing a contraction. The release of the news caused the royal currency to break the support of 1.8605 now becoming the resistance as it is currently heading to the downside next support at 1.8505. The GBP/USD is currently traded at 1.8603 while recording a high of 1.8765 and a low of 1.8572.

The yen is continuing its fall against the greenback as it hit the support of 108.30 but could not breach it as now the pair is working its way upwards to the resistance of 109.40. The USD/JPY is currently traded at 109.10 while recording a high of 109.25 and a low of 108.42.

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