The 16-nation currency pared its earlier losses as Spain sold 10-year and 30-year bonds worth 3.5 billion euros which is the maximum the government was planning to sell after the 10-year bonds rose to the highest level in nearly eight years. The auction lowered debt concerns as the euro area countries can still fund their own debt.
On the other hand, the dollar reversed its earlier gains against a basket of major currencies as seen by the dollar index which fell to 85.67 from the day's high at 86.51 after the breach of support at 85.96 ahead of the release of U.S. jobless claims and CPI.
With regard to the euro-dollar pair, it is showing incline on the daily and 4-hour charts after the Spanish news which eased debt concerns in the region ahead of the EU leaders meeting in Greece where they are expected to introduce new measures to regain financial stability.
However, the euro will remain under pressure as concerns regarding the huge sovereign debt in euro area countries are threatening recovery that is still fragile.
Today, the euro soared against the dollar to 1.2384 after breaching strong resistance at 1.2330 which halted the euro's rally yesterday. The pair recorded a high of 1.2395 and a low of 1.2240, while for the rest of the day the pair is predicted to move between support and resistance at 1.2250 and 1.2430 respectively.
As for the sterling-dollar pair, it rebounded from a low of 1.4644 after getting support from the 4-hour timeframe. Today, retail sales excluding and including auto fuel for the month of May beat analyst's expectations which gave a boost the pound. Meanwhile, the pair is trading at 1.4800 after reaching a high of 1.4823, while it is expected to move between support at 1.4675 and resistance at 1.4850.
Relative to the dollar-yen pair, it is showing slight decline on the daily charts as the drop in Asian shares caused the yen to strengthen while the downbeat U.S. housing data released yesterday is still affecting the dollar. The pair is currently trading at 91.22, recording a high of 91.43 and a low of 91.12, whereas support is seen at 90.80 while resistance is at 91.80.