The dollar tumbled after the U.S. economy released its annualized GDP showing that it was revised downwards to 5.6% from 5.9%, and this right away reduced the appeal of the dollar as investors were disappointed, especially as lately there are anticipations that the U.S. nation was the first to start pulling out stimulus measures. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently declining trading at 81.69 while recording a high of 82.20 and a low of 81.61.
The euro rebounded from a 10-month low versus the dollar as FINALLY the European Union leaders agreed to aid Greece narrow their budget deficit while saying that aid will be provided by them and help from the International Monetary Fund (IMF). Also bilateral loans will be offered to Greece, as a result of the announced that took place at the end of the two-day summit. The EUR/USD pair is currently trading at 1.3395 between the support of 1.3335 and the resistance of 1.3460 while recording a high of 1.3409 and a low of 1.3272. The momentum indicators on the one-hour charts are showing us that the pair is being traded in an overbought area.
The United Kingdom today released its total business investment showing that in the fourth quarter, investments increased and this meant that the better than projected reading, was going to support overall growth levels. The pound is currently rallying against the dollar as the pair is trading at 1.4898 between the support of 1.4840 and the resistance of 1.4930 while recording a high of 1.4902 and a low of 1.4805. The daily charts us that the pair is being traded in an oversold area.
As the dollar is the loser versus most of its counterparts, we see that the yen is rallying while the pair is currently trading at 92.60 above the support of 92.15 and below the resistance of 93.00 while recording a high of 92.88 and a low of 92.29. Using the technical one- hour charts, we see that the pair is bearish.