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UFXBank Forex Outlook: Gold Hits Record High

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar was mixed against most other major currencies in Forex trading as stocks and commodities gained.  Industry data showed that U.S. builder confidence, in the market for newly built homes, remained at an 18-month low and boosted investor appetite for higher yielding currencies. The NASDAQ and Dow Jones rallied by 1.74% and 1.37%, respectively. Crude oil strengthened by 1.6%, closing at $74.80 a barrel. Gold (XAU) rose to a new record, strengthening by $3.30 per ounce, to close at $1280.80 an ounce. Today, the interest rate decision is expected to remain at 0.25%. Building Permits are expected to remain at 0.56M, FOMC Statement.

EURO (EUR) – The Euro closed almost unchanged versus the dollar after a quiet day of economic news in the US and European countries, which didn’t cause any movement on this symbol. The momentum of the EUR/USD is still bullish for the euro, as long it’s above 1.3000 levels, a long position is preferred. The RSI indicator is above 50, which supports an uptrend as well, and if the pair goes below the 1.3000, level it could decline to 1.2900. Overall, EUR/USD traded with a low of 1.3029 and with a high of 1.3121. No economic data is expected today.

EUR/USD – Last: 1.3094

Resistance

1.3120

1.3160

Support

1.3030

1.2830

1.2800

British Pound (GBP) – The Pound fell against the Euro and the Dollar on signs that the U.K.’s housing market has weakened. This threatens to undermine the country’s recovery from its deepest recession on record. The main support of the GBP/USD on the daily chart is 1.5500, and if the pair goes below this rate, it will probably continue to decline. Overall, GBP/USD traded with a low of 1.5536 and with a high of 1.5686. No major economic data is expected today.

GBP/USD - Last: 1.5584

Resistance

1.5680

1.5730

Support

1.5535

1.5490

1.5375

Japanese Yen (JPY) –The Yen traded in a very narrow range versus the Dollar, after the no serious news was released that could influence this pair. The USD/JPY has been fluctuating over the past few days. The resistance on the daily chart is 86.00, and only if the pair crosses the resistance line, will the trend continue with its bullish momentum. Overall, USD/JPY traded with a low of 85.51 and with a high of 85.80. No economic data is expected today.

USD/JPY-Last: 85.59

Resistance

85.85

Support

85.50

85.20

Canadian Dollar (CAD) – The Canadian Dollar gained versus the US Dollar for the first time in three days, as stocks and gold climbed, and investors sought higher-yielding assets. The momentum of the USD/CAD is still negative for the US Dollar, and as long as the USD/CAD is below the 1.0400 level, a short position is preferred. The next resistance on the one hour chart is located at 1.0350. Overall, USD/CAD traded with a low of 1.0261 and with a high of 1.0345. Today, Core CPI is expected to become +0.1% vs. -0.1% prior.

USD/CAD - Last: 1.0290

Resistance

1.0320

1.0350

Support

1.0265

1.0240

1.0215