The U.S. dollar rose against major currencies after oil prices fell from a 29-month high, which eased fears over the outlook for global growth, and investors bought dollars against major currencies, meanwhile, speculations that the Fed could change their stance on quantitative easing as the U.S. economy continues to show rising economic activities.
Moreover, Moody's announced it downgraded the credit rating for Greece, which revived fears among investors over the outlook for the European debt crisis, noting that the Euro has been gaining strength recently after the ECB's Chairman, Jean-Claude Trichet, signaled the ECB will raise interest rates in April.
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, rose on daily basis to trade at 76.76, compared with the opening level at 76.42, while recording a high of 76.98 and a low of 76.41.
Gold prices eased slightly to trade at $1428.19 an ounce, compared with the opening level at $1431.35, while oil prices declined to trade at $104.64, compared with the opening level at $105.20 a barrel.
The Euro declined against the Dollar, where the EUR-USD pair is trading at $1.3907, compared with the opening level at $1.3964, while recording a high of $1.3988 and a low of $1.3860. The pair is now trading below the $1.3925 resistance level, and so long it remains below this level, we should expect more downside movement and the target then will be the $1.3860 support level, however, if the pair rise above $1.3925, the next target will be the $1.4085 resistance level.
The British Pound declined as well today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.6157, compared with the opening level at $1.6198, while the pair recorded a high of $1.6207 and a low of $1.6123. The pair is now trading below the resistance level at $1.6180 and so long it continues to trade below this level, the next target is set at $1.6090, however breaching the $1.6180 level to the upside would send the pair to the $1.6345 resistance level.
The U.S. Dollar inclined against the Japanese Yen, where the USD-JPY pair is now trading at ¥82.70, compared with the opening level at ¥82.29, while recording a high of ¥82.85 and a low of ¥82.19. The pair is now trading above the ¥82.25 support level, which suggests that the way is open to reach the resistance at ¥83.10, but the pair must remain above ¥82.25 in order for this bullish scenario to continue.