A new economic week begins with optimism especially as European governments offered Greece 45 billion euros as part of the rescue package that would help Greece narrow the deficit which stood at 12.7% of last year's GDP, as there are expectations that the finance ministers might revise that reading upwards to 12.9%.
From the optimism in the euro zone, the euro rallied to the highest level against the dollar in three weeks. The pair is currently trading at 1.3597 between the support of 1.3525 and the resistance of 1.3670 while recording a high of 1.3691 and a low of 1.3585.
The Dollar Index, which measures strength of the dollar versus six major currencies, is currently inclining trading at 80.54 while recording a high of 80.60 and a low of 80.07. The dollar is trying to gain momentum after investors locked in on profits, which therefore supported the dollar as they frantically sold the major currencies against the dollar.
The pound is trading near overbought area as seen on the charts over intraday basis which means investors were seeking potential in profits, and now selling the pound against the federal currency, which is why we currently are witnessing the pair decline to 1.5420. The United Kingdom today lacked major economic data, and the support of the currency came from the positive sentiment in markets. For the GBP/USD we currently see a support of 1.5390 and the resistance of 1.5475 while recording a high of 1.5484 and a low of 1.5400.
As investors were more interested in higher yielding currencies, we see the yen tumble against the dollar as the yen's appeal was reduced after investors were not interest in it as a safe refuge currency. The pair is currently trading at 93.56 between the support of 92.35 and the resistance of 94.00, so far the pair has recorded a high of 93.59 and a low of 92.96.