The 16-nation currency continued its surge after the release of data showing that industrial production in the euro zone beat estimates in April, while Asian and U.S. equities advanced, reflecting risk-taking behavior by investors.
On the other hand, the U.S. dollar plummeted against a basket of six currencies as seen by the dollar index on the daily charts as it fell to 86.55 from the day's opening at 86.95, but it may gain support at 86.22 then 86.05.
With regard to the euro-dollar pair, it is showing incline on the daily charts to continue last week's rebound after the breach of strong resistance at 1.2132 today. The euro rebounded from the lowest level in four years versus the green currency last week and was boosted by industrial production data released today. However, the euro remains under pressure as debt problems are still persisting and officials are introducing new measures to contain the debt woes and regain financial stability.
Currently, the euro-dollar pair is trading at 1.2228, recording a high of 1.2258 and a low of 1.2114. For the rest of the day, the pair is predicted to move between support and resistance at 1.2130 and 1.2275 respectively.
As for the sterling-dollar pair, it rebounded after Friday's sharp drop when the pair fell on downbeat manufacturing data. The Office of Budget Responsibility said today the budget deficit will narrow to 71 billion pounds by 2015 from 155 billion pounds this fiscal year, but growth was 2011 was revised down to 2.6 from 3.25 estimated in March. Meanwhile, the pair is trading at 1.4721 after reaching a high of 1.4752 and a low of 1.4549, while it is expected to move between support at 1.4570 and resistance at 1.4795.
Relative to the dollar-yen pair, it is showing slight decline on the daily charts despite the breach of resistance at 91.65 which the pair may retest again. The pair is currently trading at 91.78 after hitting a high of 92.11 and a low of 91.58, whereas support is seen at 91.45 while resistance is at 92.65.