The U.S. dollar retreated against major currencies in what seems to be a correctional wave after rising over the course of the past week, where fears over the outlook of the European debt crisis continue to mount, as Portugal is now under pressure to seek a bailout after receiving support from the ECB today through bond purchases.
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 80.88, compared with the opening level at 81.11, while recording a high of 81.31 and a low of 80.83. Gold prices slightly rose amid the dollar's weakness to reach $1372.23, compared with the opening level at $1370.49 an ounce, and oil prices declined to trade at $89.02, compared with the opening level at $89.52.
The Euro reversed to the upside against the Dollar today after sustaining heavy losses last week, where the EUR-USD pair is trading at $1.2946, compared with the opening level at $1.2895, while recording a high of $1.2961 and a low of $1.2873. The pair is now trading below the $1.2980 level, and so long it remains below this level, we should expect more downside movement and the target then will be the $1.2800 support level, however, if the pair rises above $1.3080, the direction on intraday basis will change to the upside.
The British Pound also rose today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.5576, compared with the opening level at $1.5542, while the pair recorded a high of $1.5602 and a low of $1.5475. The pair is now trading below the important level at $1.5640 and so long it continues to trade below this level, the next target is set at $1.5400, however breaching the $1.5640 level to the upside would send the pair to the $1.5775 resistance level.
The U.S. Dollar declined against the Japanese Yen, where the USD-JPY pair is now trading at ¥82.72, compared with the opening level at ¥83.04, while recording a high of ¥83.28 and a low of ¥82.66. The pair is now trading below the ¥83.30 resistance level, which suggests that the way is open to reach the ¥81.95, but the pair must remain below ¥83.30 in order for this bearish scenario to continue, however, breaching the ¥83.30 to the upside would send the pair to the resistance level at ¥84.25.