Dollar weakens, Euro falls on Trichet speech

The 16 nation currency; the Euro, lost ground against the dollar due to the statement released by the European Central Bank Chairman Jean Claude Trichet regarding the outlook for the European Economy where he said the the outlook for the region is still uncertain, adding that Greece fiscal problems won't get any special treatment.

Therefore the Dollar continued to sink against majors while gaining momentum against the Euro whereas the U.S Dollar Index; which measures the performance of the Green Benjamin against a six major currencies including the Euro, Pound and Yen declined from the opening levels of 76.978 to trade at 76.725 after reaching the highest levels for today at 77.024 and the lowest at 76.694.

The euro-dollar pair is currently unchanged on the Daily Scale where the pair is currently trading at the opening levels for today's trading at $1.4510 but the pair managed to reach the resistance levels at 1.4533 and in attempt to breach those levels in order to continue within the bullish trend. The pair managed to reach the highest levels for today at $1.4555 and the lowest at $1.4444 where the pair is expected to drop on the daily scale as the pair trades in an overbought area on the RSI and Momentum Oscillator. The Bullish direction for today is valid as far as $1.4385 remains intact, the upcoming support and resistance levels for the pair can be witnessed at $1.4425 and 1.4530 respectively.

As for the sterling-dollar pair, it extended its gains that started four days ago where the pair managed to breach the resistance levels at $1.6326 as it trades at $1.6335 the pair is currently trading above the breached resistance levels at $1.6294 where it managed to build a solid trading base in order to continue its incline to reach its targets at $1.6432. the pair will decline slightly as a correctional move as it trades in an highly overbought areas back to the previously mentioned though breached resistance levels that turned into support. The pair managed to reach the highest levels for today at $1.6345 and the lowest at $1.6247; meanwhile the bullish intraday direction remains strong as far as we don't witness a four hour closing below $1.6240, the upcoming support and resistance levels for the pair can be witnessed at $1.6240 and 1.6355 respectively.

Finally talking about the USDJPY pair, it managed to reach the ascending channel's support levels at $90.82 whereas the pair is attempting to build a solid trading base below the mentioned levels. The pair is currently trading at $90.88 where it managed to reach the highest levels for today at $92.04 and the lowest at $90.82 as for the expectations for the bearish direction over the intraday it will remain valid as long as trading remains below $92.10 levels. The upcoming support and resistance levels for the pair can be witnessed at $90.35 and 92.60 respectively.