The green currency continues its advance against majors for the third day at the end of the week after a day that lacked fundamentals from major economies. The dollar strengthened against a basket of major currencies as seen by the dollar index which rose to 80.65 from the day's opening at 80.27 as it gained support when it breached 80.07 level yesterday, where next resistance is expected to be seen at 81.30.
With regard to the euro-dollar pair, it is declining on the daily and 4-hour charts on fears Greece may not have a bailout from the EU after Germany said Greece should depend on the IMF in tackling its debt, while Trichet and Sarkozy refuse getting support from outside the EU. The conflict among EU officials made the euro continue its bearish direction that started since December, heading for the sharpest weekly drop since January. The pair is currently traded at 1.3525, recording a high of 1.3626 and a low of 1.3518, where the coming support is seen at 1.3485 and next resistance is at 1.3580.
As for the sterling-dollar pair, it fell on the daily and 4-hour charts to 1.5092. Despite the upbeat data released recently in the U.K., fears of having a swelling deficit along with concerns of having minority government are worsening outlook for the pound that is continuing its downside trend that began in December. However, Sentence said today that weaker pound is better for the economy meanwhile as it will boost exports. Today, the pair recorded a high of 1.5254 and a low of 1.5078, while it is moving between support at 1.5060 and resistance at 1.5130.
Relative to the dollar-yen pair, it is showing slight incline on the daily charts, while 4-hour and 1-hour charts are showing decline. Momentum indicators are giving a bullish sign on the daily charts. Currently, the pair is traded at 90.47, hitting a high of 90.71 and a low of 90.30, whereas support is seen at 90.00 then 89.65 while resistance is at 90.60 then 91.30.