The European sovereign debt problems continue to weigh on investors' risk appetite, where concerns from Greece's debt spreading to other nations in the continent hammered down investors' demand on risky assets for the fourth consecutive trading day, where the only refuge remains the greenback, supported by the improvement that is noted from various sectors in the world's leading economy such as the manufacturing, housing, and labor sectors, accordingly, the dollar continue to benefit from Europe's debt problems, where the U.S. dollar index enjoyed another rise on the daily scale where it's trading at 84.52, compared with the opening levels of 84.0.
In addition to the dollar, investors sought gold as a safe-haven where gold extended yesterday's gains to trade at $1192.80 an ounce, compared with the opening levels of $1174.92 an ounce, meanwhile oil retreated to trade at $78.63 a barrel, compared with the opening levels of $79.56 a barrel.
As for trading, the euro-dollar pair extended its biggest weekly drop in almost a year and a half to trade at a 14-month low of $1.2724, compared with today's opening levels of $1.2813, where it managed to set the highest levels for today at $1.2856, before it dropped to the lowest levels at $1.2651. Expectations show that the pair will descend further, targeting $1.2615 and $1.2564, following the breach of the support levels at $1.2790 and $1.2755.
Moving to the Royal currency, the GBP/USD pair dropped in trading as it opened today's trading at $1.5099, where the pair set the highest level for today at $1.5146 and the lowest at $1.4840 while currently trading at $1.4910. The pair breached the support level at $1.5072, which paved the way for the pair to target the upcoming support levels at $1.4855, but the previously mentioned support level must remain intact in order for the pair to achieve these targets.
Finally talking about the USDJPY pair, it dropped; where today's opening levels were set at 93.81 while it's currently trading at 91.99, which is also the lowest level for today, while setting the highest level for at 93.97. Yesterday's scenario was validated today, where a clear breach for the pivot support at 94.0 was confirmed, thus, opening the path for the pair to decline. The pair managed to breach the 23.6% Fibonacci support level that were witnessed at 92.43 as well, accordingly, it paved the path for the pair to target the 90.97 levels on intra-day basis, but for these expectations to prevail, levels at 92.43 must remain intact.