The 16-nation currency fell for the second day against the U.S. dollar as investors were wary of having long positions on the euro before the release of stress tests results on Friday. Also the weak auction in Portugal pushed the euro down further.

On the other hand, the dollar index rose against a basket of major currencies as seen by the dollar index which surged to 82.97 from the day's opening at 82.79. The dollar strengthened ahead of Bernanke's testimony to provide his view on monetary policy.

Regarding the euro-dollar pair, it is showing decline on the daily charts, to continue the downside correction from 10-week high; the pair reversed from an overbought area yesterday.

The pair dropped yesterday as it approached resistance at 1.3045 which pushed the pair down to 1.2808, where it is currently trading. Today, the euro zone lacked economic fundamentals ahead of the release of important manufacturing and services data tomorrow. The euro-dollar pair recorded a high of 1.2912 and a low of 1.2787, while it is predicted to move between support and resistance at 1.2775 and 1.2845 respectively.

As for the sterling-dollar pair, it retreated today on the daily charts but the pair halted its drop as it found strong support at 1.5175. Today, BoE minutes for July's rate decision showed that there was split among members for the second month. Meanwhile, the pair is trading at 1.5222 after recording a high of 1.5335 and a low of 1.5182, whereas it is expected to move between support at 1.5155 and resistance at 1.5275.

Concerning the dollar-yen pair, it is continuing its downside trend on the daily charts, but the pair surrendered some the losses as it received support at 86.90.

For now, the pair is trading at 87.06, recording a high of 87.50 and a low of 86.48, whereas support is seen at 86.60 while resistance is at 87.70.