The European single currency and the British pound rose against the dollar after the interest rate decision by the ECB and BoE. The ECB held the rate unchanged at 1%, while Trichet confirmed that the economy is recovering and the stimulus package will be withdrawn soon. The BoE, on the other hand, raised the asset purchase facility plan to 200 billion pounds from 175 billion pounds.
As regards to the euro-dollar pair, it is inclining on the daily but sliding on the 4-hour charts. The ECB left the interest rate unchanged, but Trichet's speech spurred confidence and enhanced demand on the euro. After the statement, the euro jumped to 1.4810 areas to 1.4900, but currently it retreated to 1.4865 after recording a high of 1.4917 and low of 1.4809, where the pair is supported by 1.4845 then faces the coming resistance of 1.4880.
As for the sterling-dollar pair, it is showing an incline on the daily charts but facing pressure as it is declining on the 4-hour and 1-hour charts. The BoE raised the asset purchase facility program with 25 billion pounds while markets expected 50 billion pounds rise. After the rate announcement, the sterling advanced 0.6% towards 1.6619. However, it currently slipped to 1.6584 after setting a high of 1.6634 and a low of 1.6464; while the coming support for the pair is seen at 1.6550 and the resistance is spotted at 1.6602.
With regard to the dollar-yen pair, it is showing a downside tendency over daily and 4-hour basis. The pair after breaching the strong resistance at 90.28, which represents 23.6% Fibonacci retracement for the downside trend that started on August 10, is now declining to retest it again. Now, the pair is trading around 90.50 after hitting a high of 90.86 and a low of 89.99; while the pair is currently facing the coming support level at 90.28, while the resistance is spotted at 90.70 then 90.85.