Euro fall against dollar on debt concern

The European shared currency fell against the dollar but gained
against the Japanese yen after Japan's Finance Minister said that
Japan is willing to increase its European debt holding, aiming to ease
investor's concern about the debt crisis currently sweeping through
Europe.

The pound fell against the dollar as UK retail sales declined in
December, due to bad weather conditions, while the Australian dollar
fell against all of its major counterparts as the floods in Queenstown
worsened.

The US dollar [1] index, which tracks the performance of the currency
against six-others traded higher today at 81.12, which is also the
highest, while setting a low of 80.73, this is compared with the
opening levels of 80.96.

The EUR/USD pair traded slightly lower on the daily scale, where the
pair breached 1.3000 levels, where it's currently trading at 1.2945;
this is compared with the opening levels of 1.2950. The pair managed
to set the highest at 1.2990 and the lowest at 1.2903.

Further bearishness is expected, as the pair targets 1.2930, which if
breached, would pave the path for the pair to target 1.2890 levels.
As for the pound, the cable continues to trade between the support at
1.5505 and the resistance at 1.5635. The pair is currently trading at
1.5577, while setting a high of 1.5602 and a low of 1.5510, this is
compared with the opening levels of 1.5570. The pair's trading range
would be bounded throughout today between the abovementioned support
and resistance levels.

The dollar traded higher against the yen, reaching 83.39, compared
with the opening levels of 82.70, while setting a high of 83.49 and a
low of 82.66.

The pair's nearing 83.50, with the Stochastic Oscillator heading
towards an overbought area on the daily scale, the pair might witness
a downside trend later on today that would allow it to re-test levels
at 83.00 where obtaining a daily closing below this level, would pave
the path for the pair to target 82.50.

Source: Fxstreet.com