The greenback extended its earlier drop Thursday, snapping a two-day advance against majors as witnessed on the U.S. Dollar index, which sagged to 82.71 from the today's opening levels that were set at 83.19.
the Dollar depreciated due to the large rise in unemployment benefits that surged in the week ending July 17 to 464,000, compared with the median estimates of analysts at 445,000 and the prior revised 427,000. Still, the outlook for the U.S. economy is uncertain, as mentioned by the Fed chairman; Ben Bernanke yesterday.
Technically speaking, the breach of 83.17 opened the way for today's decline and may pushthe six-currency gaugedown further to 82.30.
On the other hand, the euro rebounded after upbeat report showing that Europe's manufacturing and services sectors sustained their expansion in July, which boosted hopes that growth will continue in the second half of the year.
However, gainswere not maximized as some investors are not taking long-term positions on the European common currency, where they await the release of stress tests results tomorrow.
Regarding the euro-dollar pair, the pair is rising on the daily chart, to continue the upside trend that started June 8, spurred by better-than-expected expansion in major sectors of the economy.Meanwhile, the pair is trading at $1.2886 after setting a high of $1.2887 and a low of $1.2735. The upcoming support and resistance levels can be witnessed at $1.2780 and $1.2925 respectively.
As for the sterling-dollar pair, it slashed all the losses that were acquired throughout yesterday's trading session after the pair breached a strong resistance at $1.5175, which paved the path for the pair rise further to $1.5237, where it is currently trading. Today, retail sales for June beat estimates, giving an upside push to the pound, to record a high of 1.5295 and a low of 1.5148. The upcoming support and resistance levels can be witnessed at1.5155 and resistance at 1.5310.
Concerning the dollar-yen pair, the pair extended yesterday's drop, but the pair surrendered some of the losses as it face a strong support level at 86.64.
For now, the pair is trading at 87.67, recording a high of 87.08 and a low of 86.32, whereas support is seen at 86.95 while resistance is at 88.00 then 88.65.