The European common currency opened this week's trading on the rise against most of its counterparts, boosted by bank's stress tests that were performed on Europe's financial sector. The results that were released Friday showed that the banking sector in the European continent is strong and could cope with any future setbacks they might face.
Easing economic conditions in the U.S. boosted demand on the 16-nation currency, where investors' confidence in the Euro returned after most European countries that suffered a huge debt burden announced budget cuts and slashed spending, no forgetting the huge stimulus fund that was set by the EU in order to forestall defaults.
The U.S. dollar index, which tracks the performance of the dollar against six major currencies, rose slightly on the daily scale where the dollar trimmed off some of its losses against the euro that accounts for nearly 60% of the dollar index; therefore, the index inched higher from the opening levels at 82.42 to trade at 82.46, where the index reached the highest at 82.55 and the lowest at 82.24.
As for the euro-dollar pair, it extended the gains for the third consecutive trading day where it's currently trading at $1.2901, compared with the opening levels of $1.2888. The pair peaked at $1.2957 and struck a low of $1.2876. Expectations show that the pair will continue on ascending this week with key targets at 1.3255, as long as trading remains above 1.2425 throughout this week.
Moving to the Royal currency, the pair jumped to trade at $1.5477, compared with the opening levels of $1.5414 where the pair reached the highest at $1.5500 and the lowest at $1.5407. Expectations show that the pair will extend its bullishness over intraday basis. Technical targets start at 1.5695 then 1.5780, but keep in mind that breach of 1.5360 could postpone the awaited targets.
Finally talking about the dollar's performance against the Yen, the USDJPY pair traded lower from its opening levels of 87.46, where it's currently trading at 87.14, the pair managed to reach the highest levels today at 87.71 and the lowest at 87.03. A bearish intraday trendis projected with targets at 84.75, which requires a daily closing below 89.60 in order to achieve those targets.