The euro pared the prior two sessions' advance after speculations Spain will receive 250 billion euros aid from the EU, IMF and U.S. treasury to cut its huge sovereign debt. However, the Spanish government denied the news.
On the other hand, the dollar rebounded against a basket of major currencies as it rose to a high of 86.34, where it is currently trading at 86.21 while it opened that day at 86.00, as seen by the dollar index on the daily charts. The dollar is advancing ahead of important U.S. housing and industrial data and despite the Russian announcement that the central bank would decrease dollar reserves.
With regard to the euro-dollar pair, it is showing decline on the daily charts after the Spanish news which renewed debt concerns in the region and outweighed the positive impact of yesterday's auctions undertaken by Spain and Ireland which provided clues that European nations can still fund their debt.
Still there are concerns regarding the huge sovereign debt in euro area countries that is threatening recovery. Yesterday, the single Greece was downgraded to junk by Moody's and data released showed that German investor confidence fell sharply in June.
Today, the euro fell against the dollar to 1.2280 after hitting strong resistance at 1.2330. The pair recorded a high of 1.2235, while for the rest of the day the pair is predicted to move between support and resistance at 1.2215 and 1.2335 respectively.
As for the sterling-dollar pair, it rebounded from a low of 1.4747 after getting support from the 4-hour and 1-hour timeframes. Today, unemployment fell in the three months ending April to 7.9% from 8.0% which continues the improvement seen recently in the U.K. ahead of the announcement of the emergency budget on June 22. Meanwhile, the pair is trading at 1.4817 after reaching a high of 1.4829, while it is expected to move between support at 1.4795 and resistance at 1.4850.
Relative to the dollar-yen pair, it is showing slight incline on the daily charts after reaching a low of 91.36, but the pair will face resistance at 91.65 where it may fell from. The pair is currently trading at 91.49, whereas support is seen at 91.35 while resistance is at 91.75 then 92.25.