The green back bounced on Friday for the third day against a basket of major currencies as seen by the dollar index, gaining momentum from the FED's unexpected rise in discount rate from 0.5% to 0.75% for the first time in three years. The FED's decision raised speculations the U.S. will raise interest rate before other major central banks. The dollar index reached 81.9, recording a high of 81.33 after breaching strong resistance at 80.70 yesterday.

With regard to the euro-dollar pair, it extended its losses to continue the bearish direction that started since the beginning of December, where the 16-nation currency is currently traded at nine-month low versus the dollar. Today's data came mixed as PMI manufacturing showed advance while services slid for the second month. Meanwhile, the pair is traded at 1.3493 after reaching a high of 1.3535 and a low of 1.3443, where the coming support is seen at 1.3430 and next resistance is at 1.3530.

As for the sterling-dollar pair, it declined sharply on the daily charts where the pound continued its fall today after retail sales dropped suddenly in January to -1.5% from 0.3%. The pair is continuing its downside trend that started since mid November. Now, the pair is traded at 1.5373, recording a high of 1.5543 and a low of 1.5342, while it is moving between support at 1.5335 and resistance at 1.5455.

Relative to the dollar-yen pair, it is showing incline on the daily and 4-hour charts. Now, the pair is traded at 91.96, reaching a high of 92.08 and a low of 91.65, while it is moving between support at 91.25 and resistance at 92.50. The pair gained after the breaching resistance at 91.65 yesterday which represents 23.6% Fibonacci retracement to the upside trend that started in December.