The green currency retreated today after advancing for two days before the Federal Reserve Chairman Ben Bernanke delivers his semiannual report staring today. Bernanke is predicted to say that the 0.25% increase in discount rate last week is not an intermediate step towards raising the borrowing cost that is expected to remain low to give further support to the economy. The dollar index, a gauge of the dollar's movements versus a basket of major currencies, slipped to 80.75 from yesterday's closing at 80.93.
With regard to the euro-dollar pair, it is showing a slight incline, reversing the previous losses incurred in the last two days. However, the euro is still traded near its lowest in 9 months versus the greenback. Today's data showed that Germany's growth slowed down in the fourth quarter by reaching 0.0% from 0.7% in the third quarter, which capped the euro's advance. Now, the pair is traded at 1.3541 after reaching a high of 1.3572 and a low of 1.3500, where the coming support is seen at 1.3525 then 1.3485 and next resistance is at 1.3675.
As for the sterling-dollar pair, it fell slightly on the daily and 4-hour charts in the absence of economic data from the U.K. today. The pair is continuing its bearish trend that started since mid November, where the pair is currently traded at 1.5407, recording a high of 1.5475 and a low of 1.5400, while it is moving between support at 1.5270 and resistance at 1.5485.
Relative to the dollar-yen pair, it is showing decline on the daily and 4-hour charts. The pair is traded at 90.15, where it stopped rising when it reached a high of 90.35, which represents 38.2% Fibonacci retracement to the upside trend that started in December. The pair stopped falling when it hit a low of 89.93, while it is moving between support at 89.55 and resistance at 90.55.