The U.S. dollar and Japanese yen gained today against other majors as concerns regarding China's bank lending limitation enhanced demand on lower-yielding assets as hedges. The dollar index spiked to a high of 78.35 compared with the day's low of 77.46. The green currency rallied after breaching strong resistance at 77.80.
With regard to the euro-dollar pair, it declined sharply on the daily and 4-hour charts on debt woes in Greece that is threatening recovery in the 16-nation region. The pair continued its bearish pattern that started in December, hitting the lowest in five months versus the dollar, after the breakout of 1.4215 level. Meanwhile, the pair is traded at 1.4110 after reaching a high of 1.4295 and a low of 1.4105, where the coming support is seen at 1.4050 and next resistance is at 1.4215.
As for the sterling-dollar pair, it is showing a decline on the daily charts. King's announcement that inflation will decline again near 2% outweighed the positive impact of the slowdown in unemployment. Currently, the pair is traded at 1.6273 after reaching a high of 1.6371, while the day's low was at 1.6242. The coming support for the pair is seen at 1.6240 and the resistance is spotted at 1.6310.
Relative to the dollar-yen pair, it retraced its earlier losses when it declined to a low of 90.77 where the pair is traded at 91.19 recording a high of 91.45, while it is currently facing the coming support level at 90.50, while the resistance is spotted at 92.35 then 91.85.