The euro reversed its earlier gains ahead of stress results on European banks due at 16:00 GMT after a newspaper mentioned that several Spanish savings banks failed tests which raised concerns that the financial system is still fragile and may be subject to other shocks.

The 16-nation currency advanced earlier today on optimism in markets after upbeat manufacturing and services data yesterday and the climb in German IFO business climate for July to the highest level since 2007 today.

On the other side, the dollar index, which tracks the dollar movements versus six major currencies, rebounded from a low of 82.20 to 82.83 while it touched a high of 83.02 in absence of data from the United States today.

Regarding the euro-dollar pair, it is showing decline on the daily and the 4-hour charts ahead of the stress test results. Meanwhile, the pair is trading at 1.2835 after visiting a high of 1.2964 and a low of 1.2791, while it is predicted to move between support and resistance at 1.2480 and 1.2890 respectively.

As for the sterling-dollar pair, it inclined today on the daily charts after the better than expected growth data which almost doubled analysts forecasts, where GDP for the second quarter surged to 1.1% from 0.3% in the first quarter.  However, the pound retreated after reaching a high of 1.5448 to 1.5380, where it is currently trading. The pair touched a low of 1.5249 earlier today, whereas it is expected to move between support at 1.5310 and resistance at 1.5455.

Concerning the dollar-yen pair, it inclined slightly on the daily charts, but facing downside pressure from the 4-hour and 1-hour charts. For now, the pair is trading at 87.22, recording a high of 87.46 and a low of 86.71, whereas support is seen at 86.95 while resistance is at 86.60 then 87.70.