The 16-nation currency strengthened against majors after economic confidence rose to the highest level in two years and German unemployment slid for the 13th month which added to signs of recovery in region, thereby supporting the single currency.

Also, the better-than-estimated results by large European companies such as Siemens, BASF, Volkswagen and Lufthansa as well as others gave another impetus to the euro.

The euro hit 11-week high against the dollar as the breach of 1.3050 levels lifted the pair a high of 1.3091 where it faced a resistance causing it to retreat to 1.3074 where it is currently trading.

Earlier today, the pair visited a low of 1.2976 while it is predicted to move between support and resistance at 1.3030 and 1.3115 respectively.

Accordingly, the dollar index dropped to 12-week low against a basket of major currencies to 81.60 after recording a low of 81.52 where it is expected to find support at 81.45. The dollar is impacted by the slowdown in U.S. economy, especially after the Fed notes released yesterday which referred to a slowdown in growth.

Moving to the sterling-dollar pair, it is showing advance on the daily charts, yet facing downside pressure from the 4-hour and 1-hour charts which pulled the pair from a high of 1.5661 to 1.5621. Despite the drop in Mortgage approvals today, the pound is still traded near 5-month high against the greenback due the weakness of the dollar. However, another downside pressure is coming from momentum indicators which are showing that the pair is overbought, thus a downside correction may occur.

The pair recorded a low of 1.5581 today, whereas it is expected to move between support at 1.5540 and resistance at 1.5670 for the rest of the day.

Concerning the dollar-yen pair, it is moving south for the second day on the daily basis where it currently trading at 86.93 ahead of the release of U.S. jobless claims. The pair recorded a high of 87.50 and a low of 86.71, whereas support is seen at 86.25 while resistance is at 87.95.