The 16-nation currency fell for the third day against majors on debt concerns the accumulating debt will spread from country to another while Greece will not be able tame the deficit despite the EU-IMF aid. On the other hand, the U.S. dollar spiked against a basket of major currencies as seen by the dollar index on the daily charts. The six-currency gauge index jumped to 84.13 from the day's opening at 83.38 after breaching resistance at 83.70 ahead of the release of ISM non manufacturing in the U.S.
With regard to the euro-dollar pair, it is showing decline on the daily and 4-hour charts to the lowest level since April 2009 on debt worries in euro zone members. Merkel mentioned today that an orderly default in the euro area's indebted countries may avert the repeat of the Greek debt woes. Today's data showed improvement in services but it could not halt the euro's decline. The 1999-introduced currency slipped to 1.2818 after breaching support at 1.3034 yesterday heading for the strong support at 1.2440. The pair opened at 1.2986, while it reached a high of 1.2996 and a low of 1.2802. For the rest of the day, the pair is predicted to move between support and resistance at 1.2790 and 1.2820 respectively.
As for the sterling-dollar pair, it is moving to the downside on the daily charts for the third day after the breakout of strong support at 1.5275 on Monday. The royal pound is still under pressure till elections settle tomorrow referring that David Cameron is closer to winning the battle. Meanwhile, the pair is trading at 1.5076 reaching a high of 1.5172 and a low of 1.5065 while it is expected to move between support at 1.5030 and resistance at 1.5160.
Relative to the dollar-yen pair, it is showing slight incline on the daily charts after stopping its rise when it reached a high of 94.98. Signs of global recovery led by Asia are eroding demand on the yen as a refuge. The pair is currently trading at 94.70 after hitting a low of 94.47, whereas support is seen at 94.00 while resistance is at 95.15.