The euro pared some of its losses on Monday trading after the release of better-than-anticipated German business confidence report.
German IFO business climate for March rose to 109.8, exceeding both expected reading of 109.6 and revised of 109.7, where both current situation and expectation gauges also surpassed analysts' projections.
The improvement showed that the debt crisis is easing after granting Greece a second bailout, before European finance ministers meet in Denmark this week to decide on possible expansion in the power of the European rescue fund.
A two-day meeting on March 30-31 will decide whether there will be an agreement over boosting the size of the fund to 750 billion euros, through combining the remaining of the EFSF (250 billion euros) and the ESM (500 billion euros) to create a buffer against the spread of debt contagion to other euro area nations, where officials in Berlin said on Sunday Germany is more resilient to boosting the European firewall to ease pressure in financial markets.
Currently, the EUR/USD pair is trading around 1.3230, after getting support near SMA 100 level at 1.3200 to rebound from the day's low of 1.3190 while the high was recorded at 1.3284.
The trading range for this week is among key support at 1.2930 and key resistance at 1.3550.
On the flip side, the U.S. dollar showed advance against a basket of major currencies on the daily basis, where the dollar index is currently hovering around 79.50 compared with the day's opening at 79.65, where it reached a low of 79.31 after getting support around 79.30 which represents SMA 100 level.
Against the yen, the greenback tool the pair higher to trade around 82.80 after recording a high of 82.92 and a low of 82.34.
The trading range for this week is among key support at 80.00 and key resistance now at 85.50.
Later in the day, a U.S. pending home sales are expected rise 1% in February after recording 2.0% advance a month earlier.
Moreover, the pound snapped some of the losses against the dollar, especially after the breach of SMA 200 level around 1.5850.
The GBP/USD pair is currently trading around 1.5855 after rebounding from a low of 1.5799 while the high was seen at 1.5882, where the trading range for this week is among key support at 1.5515 and key resistance at 1.6165.