The Euro slumped against most of its major counterparts as Greece’s debt problem continues to suppress the 16-nation currency and weaken it, where the euro slumped the most in a month against the Dollar and the Yen as speculation that Greece will fail to secure financial assistance from the European Union mounted, thus the euro dropped by more than 0.5 percent against the Dollar and the Yen in today’s trading session.
Meanwhile the Dollar gained after the consumer price index showed that inflation levels in the U.S remained subdued, thus confirming the Feds' projection over the outlook for inflation along with what was reported yesterday by the PPI index that also confirmed that inflation will remain under control in the upcoming period and well below the Fed target rate of 2.0 percent for inflation.
The U.S dollar index, which tracks the performance of the Dollar against a basket of currencies, surged in today’s trading session where it’s currently trading at 80.186, compared with the opening levels of 79.817 where it managed to reach the highest levels for today at 80.442 and the lowest at 79.733.
The euro-dollar pair dropped severely in today’s trading session where it rebounded from the 50% Fibonacci resistance levels at $1.3733, where it’s currently trading at $1.3621. The pair is dropping in an attempt to test the support levels at $1.3600 where a breach is expected on the daily scale and the pair is trading in an overbought area on the stochastic oscillator, in addition to that, it's validated by the positive signs of a drop on the daily momentum indicator, meanwhile the expected bullish intraday short term trend was breached as expectations required a four-hour trading to remain above 1.3635 in order to rebound but if the pair managed to close below these levels, the descending pattern will prevail throughout the remainder of today’s trading session. As for the upcoming support and resistance levels, they are set at $1.3580 and $1.3655 respectively.
Moving to the Sterling, the pair managed to breach a strong support level at $1.5270 and descended further to trade at $1.5253, meanwhile expectations show that the pair will ascend on the short term with targets at $1.5475 but it’s important that levels at $1.5130 remain intact for these expectations to prevail. The pair managed to reach the highest for today at $1.5327 and the lowest at $1.5214 meanwhile the upcoming support and resistance levels can be witnessed at $1.5185 and $1.5270 respectively.
Finally talking about the USDJPY pair, expectations show that the pair will decline on the short term, keeping in mind that a breach of 90.00 would pave the way to resume those expectations on the short term with targets at 89.30 and 89.00, but in order to achieve those targets a clear breach for 90.00 levels are required plus the 90.60 levels must remain intact as trading remains below those levels. The pair managed to reach the highest for today at 90.80 and the lowest at 89.73 while currently the pair is trading at 90.25, and the upcoming support and resistance levels can be witnessed at 90.00 and 90.60 respectively.
