The Japanese yen and U.S. dollar trimmed their last week gains on hopes the EU during their summit next week will put measures to help Greece to rein in their budget deficit. The optimistic news spurred demand on higher-yielding assets, especially the euro. The dollar index, a gauge of the dollar's strength versus a basket of major currencies, slipped below strong support at 80.07 to 79.98 from the day's opening at 80.41.
With regard to the euro-dollar pair, it is inclining on the daily and 4-hour charts, stopping the bearish pattern that started at the beginning of December as it rebounded from an oversold area as indicated by the Stochastic Oscillator momentum indicator. Today, German current account witnessed a widened surplus in December, while CPI remained unchanged in January. Meanwhile, the pair is traded at 1.3755 after reaching a high of 1.3773 and a low of 1.3641, where the coming support is seen at 1.3650 and next resistance is at 1.3800.
As for the sterling-dollar pair, it is also surging on the daily and 4-hour charts. The pair rebounded after being oversold as seen by the Stochastic Oscillator on the daily charts. The pair halted its downside trend that started since mid November, where it is currently traded below the prior support at 1.5685 which became resistance. Now, the sterling is traded at 1.5630, recording a high of 1.5644 and a low of 1.5559, while it is moving between support at 1.5570 and resistance at 1.5660.
Relative to the dollar-yen pair, it edged up on the daily charts, but showing decline on the 4-hour and 1-hour charts. The pair is currently traded at 89.48, after breaching strong resistance at 89.30 which represents 50.0% Fibonacci retracement to the upside trend that started at the beginning of December. Today, the pair reached a high of 89.79 and a low of 89.14, while it is expected to face the coming support level at 88.90, while the resistance is spotted at 89.90.