Optimistic day for the Euro as extended this week's rally due to the speculation that Europe's might not flounder global recovery, moreover, investors risk appetite received a boost after better than expected reports from China, Japan and Australia that encouraged investors into targeting stocks and higher yielding assets.
The ECB and BoE held its rate decision Thursday where both banks preserved their rates at record lows, where the ECB's Chairman Juan-Claude Trichet stated that Temporary bond purchase will continue, which provided the euro with enough momentum to extend gains against the dollar.
The U.S. dollar index, which tracks the performance of the dollar against six major currencies, dropped for the fourth-consecutive day, reaching 87.24, compared with the opening levels of 87.60.
As for trading, the euro-dollar pair traded higher at $1.2085 compared with the opening levels of $1.1976, where it managed to reach the highest levels today at $1.2134 and the lowest at $1.1954. The pair breached the awaited resistance at 1.2045 though hit the 50 MA which restricted the upside movement. A bullish intraday trend is activated with targets at $1.2150; expectations will remain intact as far as the pair does not consolidate below 1.1975.
Moving to the Royal currency, the pair appreciated on the daily scale to trade at $1.4658, compared with the opening levels of $1.4654, where it managed to reach the highest levels today at $1.4664 and the lowest at $1.4652. Furtherintraday upside movementis expected today, affected by the breach of the $1.4605 leading the pair towards 1.4795 areas. Finally talking about the dollar's performance against the Yen, the USDJPY pair traded slightly lower from the opening levels of 9124 as it's currently trading at 91.18, the pair managed to reach the highest levels today at 91.46 and the lowest at 90.83. The pair is nearing the support level for the minor ascending channel at 91.10. This level is required to be breached in order to insure the expected bearish intraday direction for today with targets at 88.60 levels, keeping in mind that a breach of 92.90 will discard those expectations.