The European shared currency fell against the dollar the most in two-weeks after the manufacturing data from the Euro-Zone showed further expansion in the month of December, from the prior month.
Speculations that the debt burdened nations in Europe may cause difficulties for banks to raise funds caused the euro to depreciate against the dollar, while the single currency gained as opted in the U.S. dollar index, while allowing stocks to gain in Europe and futures in the U.S. to point to a higher start.
The U.S. dollar index, a six-currency gauge for the dollar's performance, traded higher Monday, where it opened trading at 79.30 while setting a high of 79.52 and a low of 79.22 before settling to trade near 79.34 levels.
The shared European currency fell in trading today from the opening levels of 1.3345 to a low of 1.3248 before settling to trade near 1.3315 levels. Further bearishness is forecasted on the daily scale, targeting levels at 1.3120, keeping in mind that a breach of 1.3375 would weaken the chances to depreciate to the suggested levels.
Today's key support and resistance levels can be found at 1.3120 and 1.3400 respectively.
As for the royal cable, the currency fell against the dollar in trading, to trade at 1.5465, compared with the opening levels of 1.5561, where it set a high of 1.5584 and a low of 1.5444.
The breach of 1.5505 paved the path for the pair to depreciate further, targeting the support at 1.5370.
Finally talking about the dollar performance against the Japanese currency, the dollar rose on the daily scale to trade at 81.38, compared with the opening levels of 81.20, while setting a high of 81.45 and a low of 80.91.
The pair's trend remains bearish for this week with fluctuation to be noted throughout the week along with a minor correction to the upside. The pair will target 80.35 levels this week where if breached, it will pave the path for the pair to depreciate further to 79.0, keeping in mind the importance of stability in trading below 82.30.