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UFXBank Forex Outlook: Euro Pushing Beyond 6-month High

Written by UFXBank Research Team
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USD Dollar (USD) – The dollar weakened against most of the major currencies in Forex Trading, after the ISM Manufacturing PMI came out 54.40 lower than the expected 54.50. The core PCE price index came out unchanged at 0.1%. Personal Spending came out 0.40%, better than an expected 0.30%, and the Revised UOM Consumer Sentiment came out 68.2, better than the expected 67.1.    The stock market closed positive with the Dow Jones rising 0.39% and the NASDAQ rising 0.09%. Crude Oil jumped another day to $81.69 a barrel. Gold (XAU) touched another record $1320.5 but closed at $1318.87 an ounce. Today, the Pending Home Sales are expected at 2.8% vs. 5.2% previously, and the Fed Chairman, Ben Bernanke will speak.

EURO (EUR) – The Euro rose and reached another record for the last 6 months after the Final Manufacturing PMI came out at 53.7, better than the expected 53.6. Breaching the resistance level of 1.3800 might push the pair higher. Overall, EUR/USD traded with a low of 1.3628 and with a high of 1.3791.  Today, the PPI is expected unchanged at 0.2%.

EUR/USD – Last: 1.3760

Resistance

1.3805

Support

1.3740

1.3680

1.3560

British Pound (GBP) – The Pound rose versus the dollar. The Manufacturing PMI came out at 53.4, lower than an expected 53.9. Breaching the resistance level of 1.5870 might push the pair higher. Overall, the GBP/USD traded with a low of 1.5703 and high of 1.5872. Today, the Constructions PMI is expected at 51.7 vs. 52.1 previously.

GBP/USD - Last: 1.5809

Resistance

1.5867

1.5880

1.5919

Support

1.5780

1.5680


Japanese Yen (JPY) – The USD/JPY pair attempted to reach low levels of 83, but it seemed like investors were holding it above and the pair moved back to 83.5, leaving it unchanged. The Average Cash Earning came out at 0.0%, lower than the expected 0.8%. The USD/JPY has broken the support level that it had at 84.20 levels, therefore the momentum is negative again for the dollar. Overall, USD/JPY traded with a low of 83.15 and with a high of 83.55. No economic data is expected today.

USD/JPY-Last: 83.58

Resistance

83.79

84.05

85.00

Support

83.15


Canadian dollar (CAD) – The U.S dollar weakened against the Canadian Dollar. Trading below 1.0220 might pull the pair down. Overall, USD/CAD traded with a low of 1.0187 and with a high of 1.0313 . No economic data is expected today.

USD/CAD - Last: 1.0189

Resistance

1.0220

1.0255

1.0313

Support

1.0189