The U.S. currency has finally retained some gains against the EUR, after a sharp decline for the last two days which saw a decline in value to as low as 1.3059. The Euro-Zone currency may go further against the US Dollar after the European Central Bank (ECB) cut its main refinancing rate by a half-percentage point to 3.25%, making it the second cut in a month. The EUR continues to deteriorate after falling 0.2% yesterday.

Although euro has rebounded from 1.2826, yesterday's sharp retreat from 1.3117 signals a top has been formed there and consolidation with downside bias would be seen but break of said support is needed to bring correction of recent rise to 1.2795, then towards 1.2750. However, the trend has touched the lower bollinger band at 1,2789 retracting towards 1,2860 maintaining a downtrend where 1.2700 would contain weakness and bring another bounce.

GBP USD is in a range between 1,5645 and 1,6180. The pair moves without trend and swinging around exponential moving averages (EMA 50 and 100). The volatility decreases. Bollinger bands are tightened. The price should continue to move in 1,5645 / 1,6180 range.

Yesterday the JPY saw bearish results against most of its major currency rivals. The JPY was predominantly influenced by the other major currencies' behavior, however, as only one indicator was published from the Japanese economy. It appears lately as if the JPY is being motivated by outside factors more than by the Japanese economy.