The world's reserve currency managed to extend its gains against the Euro due to concerns that rose from the bailout plan that was introduced to European markets of $1.0 trillion, that would suppress the Euro's value over the long term as the liquidity pumped into the financial system would raise the money supply in the economic cycle, and accordingly, raise inflationary threats in the European continent.
Investors sought stocks along with low yielding assets and commodities as safe investments and a hedge against inflation, causing gold to hit an all time record high of $1244.86 an ounce, while oil traded at the opening levels of $75.87 a barrel due to the inverse relationship between oil and the dollar. Moreover, the U.S. dollar index, which tracks the performance of the dollar against six major currencies, trimmed off its losses and rose to trade near its opening levels of 84.74 as it's currently trading at 84.71, where the index managed to reach the highest for today at 84.90 and the lowest at 84.20.
As for trading, the euro-dollar pair dropped slightly on the daily scale where it opened today's trading at $1.2660 while it managed to reach the highest levels for today at $1.2739 and the lowest at $1.2602, meanwhile the pair is trading at $1.2652. Expectations show that the pair will rise in a correctional move targeting the 23.6% Fibonacci levels at $1.2700, before it descends to target the support levels at $1.2600, thus a breach for $1.2700 levels will weaken the descending pattern for the pair.
Moving to the Royal currency, the GBP/USD pair dropped in trading and slashed off most of yesterday's gains where the pair is trading opened at $1.4953 while it managed to reach the highest levels today at $1.5043 and the lowest at $1.4816, while currently the pair is trading at $1.4861. the four-hour closing below $1.4960 levels paved the path for the pair to extend its drop and target initially the $1.4810 levels and then the $1.4650 levels, but levels at $1.4960 levels must remain intact for these expectations to prevail.
Finally talking about the USDJPY pair, it rose in today's trading where the pair opened trading at 92.60 while it managed to reach the highest levels today at 93.26 and the lowest at 92.43, meanwhile the pair is trading at 93.20. Expectations show that the pair will descend to towards 91.45 then 90.65 IF the pair fails to breach the 93.30 levels, but a four hour closing above these levels will cause the pair to rise further and target the upcoming resistance levels at 94.00 which is a pivot level.