The yen and dollar gained against other currencies on concerns spread in markets after the U.S. trade balance showed a widened deficit in December amid the fears prevailing from the Greek budget deficit woes. Later on today Bernanke, the Federal Reserve chairman, will talk about rolling back stimulus funds. The dollar index continued its upside trend that started in December to 79.96 from the day's opening at 79.74.
With regard to the euro-dollar pair, it is declining on the daily charts, above its lowest in 8 months versus the dollar, to continue the bearish pattern that started at the beginning of December and paring yesterday's advance. The euro zone lacked fundamentals today but fears that Spain, Portugal, and Greece will not be able to tackle their budget deficits are dominating markets ahead of tomorrow's European summit. Meanwhile, the pair is traded at 1.3737 after reaching a high of 1.3811 and a low of 1.3722, where the coming support is seen at 1.3705 and next resistance is at 1.3795.
As for the sterling-dollar pair, it is also declining on daily charts to continue the bearish direction that started since mid November. The sterling fell today after the release of the inflation report which lowered growth forecasts and after King said that there might be extension to the APF program if needed. Now, the sterling is traded at 1.5610, recording a high of 1.5764 and a low of 1.5599, while it is moving between support at 1.5580 and resistance at 1.5745.
Relative to the dollar-yen pair, it edged down on the daily charts, but showing incline on the 4-hour and 1-hour charts. The pair is currently traded at 89.50, after touching strong support at 89.30 which represents 50.0% Fibonacci retracement to the upside trend that started at the beginning of December. Today, the pair reached a high of 90.01 and a low of 89.14, while it is expected to face the coming support level at 89.25 then 88.90, while the resistance is spotted at 90.00.