The 16-nation currency rebounded after two days of decline after Trichet and Merkel's upbeat announcements ahead of the EU Summit later on today, while the sterling rose after better-than-estimated retail sales data. On the other hand, optimist in markets damped demand on lower-yielding currencies causing the yen and dollar to drop.
With regard to the euro-dollar pair, it rebounded on the daily and 4-hour charts after the ECB President Trichet said the ECB will extend emergency collateral rules beyond 2010, providing support to Greece and other European members suffering from high debt. In addition, Merkel announced that a combination of International Monetary Fund and bilateral EU aid is to be conferred to Greece as a last resort which also helped the euro to rebound from 10-month low against the green currency ahead of the EU Summit two-day meeting. The pair is currently traded at 1.3364, doing an attempt to rebound from an oversold area after recording a high of 1.3368 and a low of 1.3283, where the coming support is seen at 1.3210 and next resistance is at 1.3410.
As for the sterling-dollar pair, it is also inclining on the daily and 4-hour charts reaching 1.4963 after gaining support at 1.4855. The pound resumed its advance today after a report showing that U.K. retail sales rose to 2.1% in February from 3.0% fall in January. However, the pair failed to remain above the 1.50 psychological level when it touched a high of 1.5003 earlier today, while it hit a low of 1.4852. For the rest of the day, the pair is expected to move between support at 1.4840 and resistance at 1.5030.
Relative to the dollar-yen pair, it is showing a slight decline on the daily charts due to upside pressure from the 4-hour and 1-hour charts. The pair gained support as it approached 91.65 level which represents 38.2% Fibonacci retracement to the upside trend that started in December. Currently, the pair is traded at 92.03, hitting a high of 92.18 and a low of 91.74, whereas support is seen at 91.90 while resistance is at 92.35.