The 16-nation currency fell against majors, snapping its earlier advance, after a report released today showing that industrial production dropped 0.1% in June from the revised 1.1% recorded in May.
On the other hand, the dollar index, which tracks the dollar movements versus a basket of major currencies, rebounded to 82.47 from the day's low of 82.10, where it found support, ahead of the release of U.S. jobless claims later in the day.
Concerning the euro-dollar pair, it plummeted for the fourth day to 1.2840 after the touching a high of 1.2931, pushed down by the downbeat industrial production data which dragged the pair to a low of 1.2828. For the rest of the day, the pair is expected to move between support and resistance at 1.2775 and 1.2925 respectively.
The euro was affected by the grim report which raised concerns before the release of second-quarter GDP tomorrow on signs global recovery is waning.
Turning to the sterling-dollar pair, it slipped also on the daily and 4- hour basis as fears in markets damped demand on higher-yielding assets. Yesterday, BoE lowered growth estimates to 3.0% from 3.6% which added to worries after the slowdown witnessed in the United States and China.
Currently, the pair is trading at 1.5623 after recording a high of 1.5712 and a low of 1.5612, while it is expected to move between support at 1.5540 and resistance at 1.5665 for the rest of the day.
With regard to the dollar-yen pair, it is now close to the day's opening as it retreated from a high of 85.79 as pessimism enhanced demand on the yen as a refuge. So far, the pair is trading at 85.37, reporting a low of 84.91, whereas support is seen at 85.00 while resistance is at 86.55.