The 16-nation currency dropped from a two-week high against the Dollar following the announcement from the European Central Bank to leave interest rates at their record lows at 1.0% along with remarks made by ECB president Juan-Claude Trichet on Greece saying that it would not be “Appropriate” for the international Monetary Fund (IMF) to aid Greece in its predicament with its budget deficit.
Meanwhile the Dollar rose against the Yen on Jobless Claims where it dropped from a three-month high despite the fact that the cost of borrowing in the Yen for three months between banks declined below the dollar for the first time since August, which could affect the appeal for the world’s leading currency and weaken it, but the Dollar managed to pull through today against most of its counterparts, particularly the Euro when the rates were left unchanged by the ECB along with extending some stimulus measures in order to boost growth in the Euro-Zone economy that slacked off in the fourth quarter of 2009.
The effect on investors was that they turned into low yielding assets such as the Dollar and the Yen while dumping higher and more riskier assets, where the Euro fell more than 1.0% against the Dollar earlier today along with the drop in stocks as they opened in RED at the start of today’s trading session, moreover the inverse relationship between the greenback and commodities sent the Gold and Oil to drop where Gold is trading at $1132.00 compared with the opening levels of $1139.75, meanwhile Oil dropped to trade at $80.28 a barrel from the opening levels of $80.97 a barrel.
As for the U.S Dollar Index, it rose on the daily scale where its currently trading at 80.530 compared with the opening levels of 80.082 where it managed to reach the highest for today at 80.659 and the lowest at 79.966.
The euro-dollar pair dropped severely in today’s trading session where the pair managed to breach a strong support level at $1.3600 and established to build a strong trading base below those levels, expectations show that the pair will continue to drop as the pair is trading in an overbought area according to the momentum indicators, thus providing the pair with enough momentum to reach its targets at $1.3470. the pair is currently trading at $1.3567 where it managed to reach the highest at $1.3712 and the lowest at $1.3549, as for the upcoming support and resistance levels, they are set at $1.3525 and $1.3585 respectively.
Moving to the Sterling, the pair managed to slash most of yesterday’s gains, where the pair rebounded from the resistance levels at $1.5135 and currently trading at 1.5022, where it's facing a strong resistance that is witnessed $1.5050, the pair is projected to continue its drop on the four hour scale targeting levels at $1.4910 but a slight correctional move should take place, as the pair nears an oversold area on various Oscillators, but in order for the pair to reach the above mentioned targets, levels at $1.5050 must remain intact, but if the pair manages to breach those levels the upcoming target for the pair is set at $1.5190, as for the upcoming support and resistance levels, they can be witnessed at $1.4960 and $1.5050 respectively.
Finally talking about the USDJPY pair, the pair managed to breach a strong resistance level at $88.53 while currently targeting the resistance at $89.28 where the pair surged in trading as it managed to build a strong trading base throughout today on the four hour scale where it was tested by four different and strong resistance levels, but the pair managed to breach all of them in quest of its targets at the above mentioned resistance level, meanwhile expectations show that the pair’s intraday direction remains bearish with targets at $87.75 and $86.90 but the bearish trend will validate if the four hour closing remains below 89.70, meanwhile the pair is trading at $89.14 where it managed to reach the highest for today at $89.25 and the lowest at $88.12, whereas the upcoming support and resistance levels can be witnessed at $88.80 and $89.70 respectively.
