China inflation measures place pressure on dollar to drop

China told banks to increase reserve requirements by 50.0 basis points
starting January 20, which led the dollar to decline against majors
and the euro to gain. Inflation in the European continent spiked in
December, which led investors to target safety in the final trading
day for this week.

The US dollar index, traded lower today at 79.12, while setting a low
of 78.80 and a high of 79.41, this is compared with the opening levels
of 79.17.

The EUR/USD pair traded lower on the daily scale, where the pair
breached 1.3120 levels, where it's currently trading at 1.3328; this
is compared with the opening levels of 1.3360. The pair managed to set
the highest at 1.3457 and the lowest at 1.3312.

The pair's trading is bounded by the support at 1.3215 and the
resistance at 1.3415.

As for the pound, the cable breached the resistance at 1.5805 and
traded higher at 1.5872, this is compared with the opening levels of
1.5834.

Today's trading range will be bounded between the above mentioned
resistance that converted to become a support levels, and the
resistance levels at 1.5905.

The dollar traded higher against the yen, reaching 83.01, compared
with the opening levels of 82.78, while setting a high of 83.03 and a
low of 82.39.

The pair's attempting to breach 83.00, with the Stochastic
Oscillator heading towards an oversold area on the daily scale, the
pair might continue with its bullish trend that would allow it to
re-test levels at 83.00 where obtaining a daily closing above this
level, would pave the path for the pair to target 84.00.
Source: Fxstreet.com