The royal pound and the 16-nation currency pared their earlier losses against lower-yielding currencies as Chinese exports rose and U.S. and European shares bounced which eased concerns regarding debt woes spreading in Europe.
On the other hand, the dollar index, which tracks the dollar movements versus a basket of major currencies, fell to 87.77 from the day's opening at 88.08 after reaching a high of 88.38.
With regard to the euro-dollar pair, it is showing a slight incline on the daily charts after getting an upside push from the 4-hour and 1-hour timeframes. The pair rebounded from an oversold area where the euro is traded close to the lowest level in four years versus the green currency. However, fears with regard the huge debt that may curtail recovery is still weighing on the euro and putting it under pressure. France mentioned today it wants to follow the German ban on net short selling to regain stability in financial markets.
Currently, the euro is trading at $1.2010 while it is expected to face strong resistance at 1.2123 that was breached last Friday and caused the pair to open on a gap on Monday. The pair rebounded from a low of 1.922 while it reached a high of 1.2030. For the rest of the day, the pair is predicted to move between support and resistance at 1.1910 and 1.2085 respectively.
As for the sterling-dollar pair, it also rebounded after touching a low of 1.4393 while now it is currently trading at 1.4533 with bullish signals given by the Stochastic Oscillator on the daily charts. Today's data showed that visible trade deficit widened in April as it was affected by the debt crisis in EU countries, the largest trading partner for Britain. However, the pound managed to move north after approaching support at 1.4337 which the pair has been moving close to over the past three weeks. Earlier today, the pair reached a high of 1.4549, while it is expected to move between support at 1.4465 and resistance at 1.4595.
Relative to the dollar-yen pair, it is showing incline on the daily charts where the pair meanwhile is doing attempts to breach resistance at 91.64. The confidence in markets prompted investors to damp refuges which caused the yen to weaken. The pair is currently trading at 91.63 after hitting a high of 91.66 and a low of 91.23, whereas support is seen at 90.95 while resistance is at 91.90.