The 16-nation currency rebounded slightly for as an upside correction since the euro fell yesterday to the lowest level in four years against the greenback. Jean-Claude Junker who was leading finance ministers in yesterday's meeting said he is confident with Greece's plan. Today Greece will receive 14.5 billion euros from the EU as a first installment of the 110 billion euros bailout approved by the EU and IMF on May 2. On the other hand, the dollar index, which tracks the dollar movements versus a basket of major currencies, dropped for the second day to 86.05 from the day's opening at 86.14, but it stopped its losses when it touched support at 85.95.
With regard to the euro-dollar pair, it inclined on the daily and 4-hour charts on confidence in finance ministers' policies to rescue the euro. The pair rebounded from an oversold area as seen by the Stochastic Oscillator momentum indicator on the daily charts. The euro did full correction to the upside trend that started since March last year as a result of the debt crisis spreading in the region's economies. Meanwhile, the pair is trading at 1.2433 after rebounding from support at 1.2330 while reaching a high of 1.2437 and a low of 1.2312. For the rest of the day, the pair is predicted to move between support and resistance at 1.2310 and 1.2500 respectively.
As for the sterling-dollar pair, it is consolidating on the daily charts. Today's data showed that CPI rose in April to 3.7%, the highest in 17 months, which caused King to send a letter to Osborne to explain why prices exceeded the upper bound. Still, the sterling is pressured by the high debt despite the announcement of a new plan to cut the deficit yesterday by Osborne. Now, the pair is trading at 1.4480, near the lowest level in 13 months, recording a high of 1.4517 and a low of 1.4404, whereas it is expected to move between support at 1.4405 and resistance at 1.4540.
Relative to the dollar-yen pair, it is moving north on the daily charts as the advance in Asian and European shares boosted confidence, thereby damping demand on the yen as a refuge. The pair is currently trading at 92.75 after hitting a high of 92.96 and a low of 92.31, while support is seen at 91.80 and resistance is at 93.30.