The 16-nation currency rebounded from a four-year low following speculations that E.U. leaders will take measures to support the European currency, where the EUR/USD pair dropped severely today, as it traded at a low of $1.2141 before it rebounded on these speculations.
The world's leading economy released the CPI index for the month of April, where it showed that inflationary pressures in the economy are still subdued, accordingly, posing no threats to the economic recovery, which led investors to target high yielding assets, and dumping commodities, stocks and low yielding assets. Gold dropped severely to trade at $1192.25 an ounce, while oil traded at $68.84 a barrel, compared with the opening levels of $69.04 a barrel.
The U.S. dollar index, which tracks the performance of the dollar against a basket of currencies, dropped in trading where it reached 86.64, compared with the opening levels of 87.23, while the index managed to reach the highest levels at 87.45 and a low of 86.40.
As for trading, the euro-dollar pair rebounded from a four-year low, where today's opening levels were set at $1.2200, where it managed to reach the highest levels for today at $1.2365 and the lowest at $1.2141, while it's currently trading at $1.2339. Expectations show that the pair will narrow trade throughout the upcoming period, as the pair managed to breach a strong resistance level at $1.2295, meanwhile, the upcoming targets for the pair are set at $1.2370 and at $1.2440. if the pair breaches $1.2295, and validated a four-hour closing below these levels, the pair will descend further and target $1.2060.
Moving to the Royal currency, the GBP/USD pair reversed its trading and ascended for the first time in five-trading sessions, as trading opened at $1.4332 while it managed to reach the highest level today at $1.4402 and the lowest at $1.4235, while currently the pair is trading at $1.4378, meanwhile, Expectations show that the pair's upside wave is only a correctional move, where it will descend further to target $1.4095 and $1.3940, keeping in mind that trading must remain below $1.4405 in order for this scenario to prevail.
Finally talking about the USDJPY pair, it declined in today's trading, where the pair opened today's trading at 92.22 while it managed to reach the highest level today at 92.24 and the lowest at 90.94, meanwhile, the pair is trading at 91.44, Expectations suggest that the pair will fluctuate around 92.30 in order to build a strong trading base near those levels, followed by a bearish reversal; the first main target is at 91.00. It is vital that 92.75 remains intact to insure achieving these expectations.