The green currency slipped for the fourth day against majors except the yen in the wake of the downbeat payrolls released on January 8, while the pound advanced after Sentence announcements. The dollar index, a gauge of the dollar movements versus a basket of major currencies, dropped to 76.82 from the day's opening at 76.99.
With regard to the euro-dollar pair, it inclined on the daily and 4-hour charts despite the worse-than-expected annual GDP report released today which showed that Germany contracted 5% till December 31. The euro is becoming close to one-month high against the dollar, where the pair is currently traded at 1.4534, recording a high of 1.4537 and a low of 1.4454, while it faces next resistance at 1.4565 and support is seen at 1.4450.
As for the sterling-dollar pair, it jumped on the daily and 4-hour charts after Sentence, MPC policy maker at the BoE, said the cost of borrowing will increase this year which encouraged investors to buy the sterling on hopes of recovery. The pair is approaching strong resistance at 1.6290, where it is traded at 1.6272 after setting a high of 1.6551 and a low of 1.6134; while the coming support for the pair is seen at 1.6140 and the resistance is spotted at 1.6325.
Relative to the dollar-yen pair, it rebounded on the daily charts after three days of decline. The pair is currently close to the strong resistance at 91.70, which represents 23.6% Fibonacci retracement to the upside trend that started in December. The pair is traded at 91.32 after hitting a high of 91.35 and a low of 90.88, while it is currently facing the coming support level at 89.75, while the resistance is spotted at 91.85.