The U.S. dollar retreated today after the European session started, giving up all the gains recorded during the Asian session, while the common currency benefited the most and reached to the highest level in week.

The common currency rebounded after reaching low levels due to the eased jitters regarding the debt crisis and Greek default as several nations within the zone managed to pass the proposal of the expanded powers of European Financial Stability Facility through their parliaments, however, all eyes will be focused tomorrow on the German Bundestag (Parliament), which is set to decide on the expanded powers.

Regarding the European Financial Stability Facility, All the euro-zone members need to accept the expanded powers in order to be activated, where until now Greece, Ireland, Italy, Spain, France, Belgium, Luxembourg, and Slovenia managed to pass the decision through their parliaments.

Moreover, Papandreou won a vote of confidence by 155 votes against 142, which eased some of the jitters regarding a Greek default and the debt crisis in Europe, where policy makers are taking actions and holding talks in order to find suitable and quick solution, which supported the euro to rebound during the European session, mainly against the greenback.

The EUR/USD pair opened the session today at 1.3584, and the slumped to a low of 1.3541, but by the time the European session started, the common currency rebounded to leave the highest intraday record at 1.3689. The pair is trading now around 1.3630.

Technically, the pair was able to provide a 4-hour closing above the Moving Average 50 at 1.3600. This incline relieved the negativity seen on Stochastic, which provided a positive cross over now. Consolidation above 1.3525 is necessary for the bullishness to prevail.

Concerning the GBP/USD, the pair opened the session at 1.5627, and then retreated to a low of 1.5606; however, the pair rebounded to the upside as the weakening dollar supported the pound to gain strength, where the pair is currently trading at 1.5632 after reaching a high of 1.5676.

Moreover, the dollar is still trading within a narrow levels against the Japanese yen, where the USD/JPY pair is trading between 76.85 from above and 76.30 from below, and is moving sideways without taking a clear path.

Finally the dollar index (USDIX) opened the session at 77.67 and recorded a high of 77.94 and a low of 77.30, and is currently trading around 77.60.