The European sovereign debt problems continues to suppress the European currency, where the Euro returned back to February 2009 levels, due to investors' fears from Greece's debt problems and the possibility that it will expand to hit other nations in the European Union, where Moody's Investor Services is said to reconsider Portugal's debt rating that is currently set at Aa2, and might be downgraded further.
The Dollar is seemingly the only safe-haven to investors as strong data presented by the U.S. economy supports the Dollar as the world's leading economy continues to walk the path of recovery.
Fears of Greece's bailout plan of €110 billion, which is yet to be approved by E.U. leaders spurred concerns that the huge bailout plan would make it harder for other European countries such as Italy, Spain, and Portugal to acquire rescue packages from the European Union, where all face the same faith as Greece.
The U.S. Dollar Index, a gauge for the dollar's performance against a basket of currencies, rose in today's trading to 83.855, compared with the opening levels of 83.524, where the index managed to set the highest level for today at 84.307 and the lowest at 83.361. Gold inched higher to trade at $1172.05 an ounce, while oil sank to trade at $80.36 a barrel.
As for trading, the euro-dollar pair plunged severely to trade at a 14-month low, where the pair opened today's trading session at $1.2986, and managed to set the highest levels for today at $1.2996, before it dropped to the lowest level at $1.2802, while currently trading at $1.2875. The pair breached a pivot support level at $1.2935 that paved the path for further intraday declines, where the pair is now targeting levels at $1.2820 and $1.2790 respectively, but in order for the pair to achieve those expectations, levels at $1.2935 must remain intact.
Moving to the Royal currency, the GBP/USD pair dropped in trading as it opened today's trading at $1.5142, where the pair set the highest level for today at $1.5172 and the lowest at $1.5065 while currently trading at $1.5119. The pair breached the support level at $1.5160, which paved the way for the pair to target $1.5070 and $1.5030 respectively, but the previously mentioned support level must remain intact in order for the pair to achieve these targets.
Finally talking about the USDJPY pair, it dropped in today's session, where today's opening levels were set at 94.54 while it's currently trading at 94.08, after setting the highest at 94.98 and the lowest at 94.01. Expectations show two scenarios where on one hand, if the pair managed to breach the pivot 94.00 levels and sustained a four-hour closing below the 93.90 levels, it would pave the path for further bearish direction, on the other hand, if the pair failed to breach the 94.00 levels and sustained a daily closure above these levels, the pair's targets are set at 94.30 and 94.80.