The 16-nation currency extended its losses this week after the release of the worse-than-expected GDP data in the fourth quarter, which showed that the economy's growth eased to 0.1% in the fourth quarter from 0.4% in the third quarter and estimates of 0.3%. The data added to fears after the European Summit yesterday, where leaders of European economies did not mention any details of how they are going to endorse Greece to tackle its huge budget deficit. On the other hand, the U.S. dollar rose to a record against majors to 80.71 from the day's opening at 79.96 as seen by the dollar index on the daily charts.
The euro-dollar pair sharply declined on the daily and 4-hour charts, to continue the bearish pattern that started at the beginning of December. The euro lost more than 4% against the dollar since the beginning of 2010 and it is currently traded near the lowest level in nine months, versus the green currency. Today, the euro slipped after the release of the GDP data, which encouraged investors to sell the currency and resort to refuges. Meanwhile, the pair is traded at 1.3535 after reaching a high of 1.3694 and a low of 1.3529, where the coming support is seen at 1.3480 and next resistance is at 1.3585.
The sterling-dollar pair is also falling on the daily and 4-hour charts. The pair is continuing its downside trend that started since mid-november, in the absence of economic data from the U.K. The pair is currently traded below the neckline of a bearish pattern formed on the weekly charts, where it is now traded at 1.5586, recording a high of 1.5739 and a low of 1.5581; while moving between support at 1.5555 and resistance at 1.5600 then 1.5640.
The dollar-yen pairslightly inclined on the daily charts, but stopped its rally when it hit resistance at 90.35. The yen gained against majors except the dollar after China's central bank announced it will raise reserve requirements. The pair is currently traded at 89.97, after reaching a high of 90.34 and a low of 89.57, while the support is spotted at 89.55 then 88.90 and resistance is seen at 89.95 then 90.30.