The dollar ascended against a basket of currencies following the release of housing data from the US that showed weakness in conditions.
Greenback appreciated on a daily basis as indicated on the US dollar index, which tracks the performance of the dollar against six major currencies, reaching 81.30, compared with the opening levels of 80.92 where it touched a high of 81.44 and a low of 80.70.
The European common currency fell against the dollar to trade at 1.2988, compared with the opening levels of 1.3122, while setting a high of 1.3149 and a low of 1.2967.
Nonetheless, the euro is forecast to fall to the lowest levels in nearly three months after breaching 1.3360 levels last week, setting the path for the euro to depreciate to 1.2890 dollar per euro, but in order to reach those targets, trading must remain below 1.3360 levels.
The pound fell against the dollar, where it breached the support at 1.5553, to currently trade at 1.5528. The pair opened today’s trading at 1.5569 while setting a high of 1.5571 and a low of 1.5482.
Meanwhile, the cable rose against the common currency to a 10-week high as the debt crisis continues to hammer activities in the euro area, where economists believe that the debt crisis will deepen further, prompting investors to target the pound as an alternative investment to the euro.
As for the pound versus the dollar, the pair built a base on the awaited resistance level at 1.5570 to start the suggested bearish wave. Some fluctuation is expected to continue near the resistance that currently descended towards 1.5545 before resuming its decline. Targets are set at 1.5500 and 1.5425.
As for the Yen, the dollar fell against the Japanese currency where trading opened at 84.23 while setting a high of 84.30 and a low of 83.40 to currently trade at 83.66. Today’s trading range is bound by the support at 83.00 and the resistance at 84.00.