The U.S. dollar declined against major currencies as investors returned to higher yielding assets after they felt the pessimism that dominated markets on Friday amid the political unrest in Egypt was exaggerated, although demonstrations against President Hosni Mubarak continued for a seventh day to step down.

Meanwhile, data from the United States provided investors with hope over the outlook, as consumer spending rose strongly in December, while the Chicago PMI showed further expansion in January, while strong earnings in the United States led stock markets to rise.

The U.S. Dollar index, which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, declined on daily basis to trade at 77.65, compared with the opening level at 78.15, while recording a high of 78.33 and a low of 77.54. Gold prices declined to reach $1336.21, compared with the opening level at $1344.51 an ounce, and oil prices rose to trade at $91.63, compared with the opening level at $89.34.

The Euro inclined against the Dollar today, where the EUR-USD pair is trading at $1.3696, compared with the opening level at $1.3572, while recording a high of $1.3739 and a low of $1.3570. The pair is now trading between the critical support level at $1.3575 and the critical resistance at $1.3730, and so long trading remains between those levels, we should observe the pair until one of those levels is broken.

The British Pound rose back today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.6035, compared with the opening level at $1.5827, while the pair recorded a high of $1.6048 and a low of $1.5823. The pair is now trading above the important level at $1.5820 and so long it continues to trade above this level, the next target is set at $1.6060, however breaching the $1.5820 level to the downside would send the pair to the $1.5745 support level.

The U.S. Dollar declined slightly against the Japanese Yen, where the USD-JPY pair is now trading at ¥81.98, compared with the opening level at ¥82.10, while recording a high of ¥82.25 and a low of ¥81.90. The pair is now trading above the ¥81.85 support level, which suggests that the way is open to reach the ¥82.65, but the pair must remain above ¥81.85 in order for this bullish scenario to continue, however, breaching the ¥81.85 to the downside would send the pair to the support level at ¥80.35.

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