The European single currency fell against majors, especially the dollar, for the second day despite the approval of the EU and IMF 110 billion euros rescue package due to looming concerns that Greece will fail in cutting the deficit to the 3% ceiling set by the EU by 2014. The euro, which constitutes 57.6% of the dollar index, helped the index to surge to 82.72 from the day's opening at 82.35 after breaching strong resistance at 81.90 yesterday while it is expected to stop advance at resistance at 82.90.
With regard to the euro-dollar pair, it is showing decline for the second day on the daily charts on worries Greece will not succeeded in tackling the large sovereign debt amid strikes occurring in Greece that condemn the austerity measures that will be implemented to cut deficit by another 30 billion euros. The pair fell to 1.3125 from the day's opening at 1.3191 where it fell after breaching support at 1.3205, while it reached a high of 1.3213 and a low of 1.3113. For the rest of the day, the pair is predicted to move between support and resistance at 1.3090 and 1.3265 respectively.
As for the sterling-dollar pair, it is moving to the downside on the daily charts for the second day after the breakout of strong support at 1.5275 yesterday. The royal pound is still under pressure until the May 6 elections declare a clear winner as the competition is fierce between candidates which suggest that there will be a minority government. Today, U.K. manufacturing sector resumed expansion in April and mortgage approvals improved in March but these optimistic figures did not support the sterling. Meanwhile, the pair is trading at 1.5188 reaching a high of 1.5263 and a low of 1.5166 while it is expected to move between support at 1.5225 and resistance at 1.5350.
Relative to the dollar-yen pair, it is showing slight incline on the daily charts after stopping its rise when it reached a high of 94.98. Signs of global recovery and worries China will tighten its monetary measures are weakening the yen. The pair is currently trading at 94.60 after hitting a low of 94.48, whereas support is seen at 94.00 while resistance is at 95.00.