The 16-nation currency is still showing decline despite the European leaders' announcement today that they will endorse Greece to tackle its budget deficit. Investors are worried about recovery in the euro region which is damping demand on the euro. Goldman Sachs cut estimates for the euro on Wednesday. On the other hand, the U.S. dollar rebounded after falling earlier today against a basket of major currencies as seen by the dollar index which inclined above resistance at 80.07 to 80.19. The dollar gained support after U.S. jobless claims beat estimates.
With regard to the euro-dollar pair, it is declining on the daily and 4-hour charts, returning back to the bearish pattern that started at the beginning of December. The euro lost more than 4% against the dollar since the beginning of 2010 and it is currently traded near the lowest level in nearly 9 months versus the greenback. Today, the main focus was on the EU summit which helped the euro to incline temporarily, before continuing its downside trend. Meanwhile, the pair is traded at 1.3675 after reaching a high of 1.3800 and a low of 1.3650, where the coming support is seen at 1.3650 and next resistance is at 1.3745.
As for the sterling-dollar pair, it is consolidating on the daily and 4-hour charts. The pair is showing weakness and probably will continue its downside trend that started since mid November, where it is currently traded below the neckline of a bearish pattern formed on the weekly charts. Now, the sterling is traded at 1.5606, recording a high of 1.5659 and a low of 1.5558, while it is moving between support at 1.5580 and resistance at 1.5675.
Relative to the dollar-yen pair, it declined slightly on the daily charts; where the pair is currently traded at 89.72, after reaching a high of 90.13 and a low of 89.55, while the support is spotted at 89.65 then 88.90 and resistance is seen at 90.10.