The 16-nation currency fell against the dollar and pound after the President of the ECB mentioned today that the bank will gradually scale back stimulus measures. He said ECB will keep offering banks as much as they want for seven days and one month until at least October 12. The euro dropped earlier today when Merkel said tomorrow's meeting with the Greek Prime Minister will not discuss any financial commitments to Greece.
With regard to the euro-dollar pair, it pared its two-day advance against the dollar boosted by concerns about Greece and slipped further after Trichet's speech. The euro is trying to do an upside correction to recoup losses incurred in the last three months. Now, the pair is traded at 1.3637 after reaching a high of 1.3712 and a low of 1.3622, where the coming support is seen at 1.3585 and next resistance is at 1.3720.
As for the sterling-dollar pair, it is moving sideways after yesterday's incline, where today BoE kept both interest rate and amount of APF program unchanged at 0.5% and 200 billion pounds respectively, in line with expectations. The pair rose yesterday after breaching psychological level at 1.50. Meanwhile, the pair is traded at 1.5108, recording a high of 1.5135 and a low of 1.5020, while it is moving between support at 1.5030 and resistance at 1.5130 then 1.5190.
Relative to the dollar-yen pair, it rebound from an oversold area as indicated by the Stochastic Oscillator momentum indicator on the daily charts. The pair is currently traded at 88.98, hitting a high of 89.20, and a low of 88.12, whereas support is seen at 88.20 while resistance is at 89.30 then 89.70.