US Data Leads to Additional Dollar Gains

The US dollar hit a fresh one-month high against the Japanese yen after a better than expected US Building Permits helped boost confidence in the US economic recovery. That being said, the dollar did take losses against some of its higher yielding currency rivals during afternoon trading, after the positive news led to risk taking among investors. As markets get ready to close for the weekend, traders will want to pay attention to US Prelim UoM Consumer Sentiment figure, set to be released at 13:55 GMT. If the news signals additional improvements in the US economy, the dollar could see further upward movement against the yen.

EUR/USD

The weekly chart's Bollinger Bands have begun to narrow, signaling that a price shift could occur in the near future. In addition, the MACD/OsMA on the same chart has formed a bullish cross, indicating that the price shift could be upward. Traders may want to open long positions ahead of a possible bullish correction.

GBP/USD

While the Williams Percent Range on the daily chart has crossed over into overbought territory, signaling a possible future downward correction, most other technical indicators place this pair in neutral territory. Traders may want to take a wait and see approach, as a clearer picture is likely to present itself in the near future.

USD/JPY

In a sign of an impending shift in price, the Bollinger Bands on the weekly chart are narrowing. Furthermore, the Williams Percent Range on the daily chart has crossed into overbought territory, indicating that the price shift could be downward. Traders may want to open short positions ahead of a possible bearish correction.

USD/CHF

The Relative Strength Index on the weekly chart is approaching the overbought zone, signaling a downward correction could occur in the coming days. Additionally, the MACD/OsMA on the same chart has formed a bearish cross. Going short may be the wise choice for this pair.

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