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UFXBank Forex Outlook: EURUSD Touches 5-Week Low

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar traded mixed versus the major currencies after positive macro data showed that the Trade Balance came out -44B better than the expected -45B, and the Unemployment Claims came out 435k better than the expected 450k. The Federal Budget Balance came out -140.4B better than the expected -152B. The Stock Markets in the U.S closed positive with the Dow Jones adding 0.09% and the NASDAQ rising by 0.62%. Crude Oil jumped by 1.3% and closed near $88 a barrel. Gold (XAU) erased yesterday’s losses and moved back to trade above $1400 an ounce. Today, US banks will be closed in observance of Veterans Day.

Euro (EUR) – The Euro touched fresh 5 week lows against the dollar after it broke the 1.37 area but quickly recovered and back to trade around the 1.38 zone. By the end of the day, there was almost no change seen in the pair. Trading above the 1.38 support area, might push the pair back to 1.4 zones. Overall, EUR/USD traded with a low of 1.3670 and with a high of 1.3824. Today, the ECB Monthly Report will come out.

EUR/USD – Last:  1.3795

Resistance

1.3830

1.3980

1.4100

Support

1.3735

1.3670

British Pound (GBP) – The Pound showed stability and gained versus the dollar after the BOE Inflation Report, signaling that the recovery is on track in the region. Trading above the 1.61 support area might push the pair back to 1.63 zones. Overall, GBP/USD traded with a low of 1.5959 and with a high of 1.6169. No economic data is expected today.

GBP/USD - Last: 1.6147

Resistance

1.6180

1.6260

1.6300

Support

1.6100

1.6020

1.5965

Japanese Yen (JPY) – The Dollar gained versus the Yen for a second day in Forex trading, as higher U.S. bond yields favored the selling of the Japanese currency. The Core Machinery Orders came out at -10.3%, worse than the expected -9.5%. Holding above the 82 support level keeps the momentum positive for the pair. Overall, USD/JPY traded with a low of 81.53 and with a high of 82.79. No economic data is expected today.

USD/JPY-Last: 82.16

Resistance

82.80

Support

82.00

81.55

81.0

Canadian dollar (CAD) – Canada's dollar gained versus the U.S. dollar on a rally in crude oil, the nation’s biggest export. The Trade Balance came out at -2.5B, worse than the expected -1.5B. Holding above the 0.9980 support level might cause a rebound once again in the pair. Overall, USD/CAD traded with a low of 0.9991 and with a high of 1.0090. Today, Canadian banks will be closed in observance of Remembrance Day;

USD/CAD - Last: 0.9997

Resistance

1.0045

1.0095

1.0155

Support

0.9980