The dollar index was trending bearishly since the start of today's session after testing resistance areas around 82.40 which pressured the index lower in an attempt to breach 81.90 support over four-hour basis. This decline comes amid the euro's revival which accounts for the bulk of the weight among the 6 major tracked currency.
The good fundamentals from Germany from falling unemployment to the surge in confidence from the euro area that accompanied good earnings for the first quarter all helped the market ease the pessimism and take control in a break from the negativity suffered this week.
The sentiment has not much changed as worries prevail over the debt-laden nations and the fiscal imbalance in Europe, especially after S&P continued the series of horror yesterday by downgrading Spain's credit rating. The euro remains around a year's low and merely fighting back with a slight correction as the news for the Greek bailout have not emerged yet.
The EURUSD continues to correct the downside move for the second consecutive day after closing above 1.3200 yesterday which provided upside momentum for the pair. Over four-hour basis the pair is attempting to breach 1.3265 resistance which might push the pair higher towards 1.3340. So far the pair managed to record the highest at 1.3277 and the lowest of 1.3182.
Sterling that declined with the start of the session to near the 1.5125 support area rebounded to the upside targeting 1.5300 resistance; the pair is currently trading around 1.5256 recording the high at 1.5265 and low of 1.5140.
The USDJPU is still trading within a narrow range today ahead of the BoJ rate decision after the relative stability that prevailed amid the havoc over the debt crisis in Europe considering the Japanese yen is as well a safe haven like the dollar. The pair is trading among 93.80 support and 94.00 resistance recording the highest so far at 94.17 and low of 93.83.