The 16-nation currency resumed its fall against the dollar and yen on speculations the $1 trillion bailout announced last week will not help European economies cut their huge deficit. As of 05:00 local time of Brussels, European finance ministers will meet to discuss measures to reduce the high sovereign debt. On the other hand, the dollar index, which tracks the dollar movements versus a basket of major currencies, soared for the sixth consecutive session to 86.52 from the day's opening at 86.34.

With regard to the euro-dollar pair, it dropped for the sixth day where the euro is currently trading at its lowest level in four years versus the greenback on debt concerns in the euro region. After Greece, Spain, and Portugal announced new austerity measures to slash their deficit, Italy will also announce new measures which is raising concerns that the Greek contagion is spreading from one country to another. The pair is currently trading in an oversold area as indicated by the Stochastic Oscillator momentum indicator on the daily charts. Meanwhile, the pair is trading at 1.2316 after reaching a high of 1.2372 and a low of 1.2232. For the rest of the day, the pair is predicted to move between support and resistance at 1.2235 and 1.2385 respectively.

As for the sterling-dollar pair, it is moving to the downside on the daily charts, but it stopped its decline after breaching support at 1.4337 where the pair did many attempts to remain below. Still, the sterling is pressured by the high debt ahead of the announcement of a new plan to cut the deficit that will be announced today by the Treasury. Now, the pair is trading at 1.4426, near the lowest in 13 months, recording a high of 1.4545 and a low of 1.4249, whereas it is expected to move between support at 1.4335 and resistance at 1.4395.

Relative to the dollar-yen pair, it is showing slight incline on the daily charts as the dollar retraced some of its losses incurred in the previous two sessions. The pair is currently trading at 92.30 after hitting a high of 92.45 and a low of 91.74, while support is seen at 91.80 and resistance is at 92.65.