The green currency strengthened against majors on concerns Greece will not receive any help from the EU this week which increased demand on the dollar as a refuge. The dollar index, which tracks the dollar movements versus a basket of major currencies, advanced to 80.88 from the day's opening at 80.52, whereas it is expected to face next resistance at 81.30.
With regard to the euro-dollar pair, it is showing decline on the daily and 4-hour charts after the ECB President Trichet said There shouldn't be any subsidy element, no concessionary element for the loan to Greece while the German Chancellor mentioned that there must be sanctions imposed on European countries that fails to cut its deficit to the 3% ceiling set by the EU. After these announcements, speculations that Greece will not be bailed out during the European Summit this week put the euro under more pressure. The pair is currently traded at 1.3497, recording a high of 1.3568 and a low of 1.3490, where the coming support is seen at 1.3430 and next resistance is at 1.3535.
As for the sterling-dollar pair, it is also declining on the daily and 4-hour charts reaching 1.4986. The pound continued its decline after a report released today showed that U.K. inflation dropped to 3% in February. The pair is currently traded under the 1.50 psychological level which may cause it fall further if it closed below this level today. Today, the pair recorded a high of 1.5112 and a low of 1.4971, while it is moving between support at 1.4935 and resistance at 1.5030 then 1.5125.
Relative to the dollar-yen pair, it is showing incline on the daily and 4-hour charts where it is currently struggling to remain above the strong support at 90.34 which represents 38.2% Fibonacci retracement to the upside trend that started in December and which the pair has been moving close to over the past two weeks. Currently, the pair is traded at 90.40, hitting a high of 90.46 and a low of 90.04, whereas support is seen at 90.00 then 89.70 while resistance is at 90.60 then 90.95.