The euro slipped against the dollar after climbing to 1.3500 key level, the highest level since April against the greenback, but fell from those levels following Moody's rating downgrade to Anglo Irish bank.
The European Common currency dropped to a low of $1.3423 after the news of Moody's Investor Services slashed the Anglo Irish Bank debt by three notches to Baa3 -just one notch above junk- while subordinated debt was cut by six notches to Caa1.
The downbeat announcement raised concerns that the Ireland may need a financial aid from the EU and IMF to trim deficit, especially as it may need up to 35 billion euros to bail out Anglo Bank.
In addition, Der Spiegel reported that the European Commission is not confidence with regard the viability of German regional lenders, while the European Union is checking the compatibility of the financial help received by German regional lenders with regulations, thereby adding to uncertainties.
Technically speaking, the euro slipped after reaching strong resistance 1.3500 which represents 50% Fibonacci retracement to the euro's drop that started in December last year.
However, a change in the US monetary policy in the coming period may help the euro to continue its upside trend that stared in July.
In general, trading today is within narrow ranges in the absence of economic fundamentals from major economies.
Concerning the euro-dollar pair, it is currently trading at 1.3460 after reaching a high of 1.3505, while the trading range for today is among the key support at 1.3330 and the key resistance at 1.3620.
Moving to the sterling-dollar pair, it is traded near the opening price of the day as the pound failed to continue it rise for the fifth consecutive session as the drop in UK home values by 0.4% to 157,600 pounds, the lowest in 18 months, added to concerns that the British economy will suffer from sluggish growth in the second half of the year.
Now, the pair is trading at 1.5818 after recording a high of 1.5865 and a low of 1.5785, whereas the trading range for today is among the key support at 1.5725 and the key resistance at 1.5930.
With regard to the dollar-yen pair, it is showing slight incline on the daily chart but a rebound may be expected to take place as the pair is trading in an oversold area as indicated by momentum indicators.
So far, the pair is trading at 84.27, recording a high of 84.38 and a low of 84.09, whereas the trading range for today is among the key support at 83.00 and the key resistance at 85.90.