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UFXBank Forex Outlook: Euro Goes Over 1.40

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar fell against most of the major currencies and reached a 10 month low during the night before reports were released that are likely to fuel speculation that the Federal Reserve will further ease policy to support prices. Overall, the trend supports a weak Dollar. The NASDAQ and Dow Jones advanced by 0.96% and 0.69%. Crude oil increased by 1.6%, closing at $83.01 a barrel, and Gold (XAU) increased by 1.8% to close at $1370.50 an ounce. Today, the trade balance is expected at -44.50B vs. -42.80B, previously, Initial jobless claims are expected at 449.00K vs. 445.00K previously, and crude oil inventories are also expected to be released today.

Euro (EUR) – The Euro strengthened against the Dollar and reached the highest levels since January after the industrial production results came out 1.00% better than the expected 0.10%. The momentum of the EUR/USD is still strongly bullish, and as long as it is above 1.4000, the momentum will continue to be positive. Overall, EUR/USD traded with a low of 1.3912 and with a high of 1.4094. Today, the ECB (European Central Bank) monthly report is expected.

EUR/USD – Last: 1.4077

Resistance

1.4100

Support

1.4031

1.4001

1.3951

British Pound (GBP) – The Pound continued to rise against the Dollar after the unemployment rate came out better than expected, in addition to the Dollar continuing to weaken. The GBP/USD on the daily chart is facing resistance around 1.6000. The momentum is bullish as long as the GBP/USD is higher than 1.600. Overall, GBP/USD traded at a low of 1.5774 and a high of 1.6000. Today, no economic data is expected.

GBP/USD - Last: 1.5975

Resistance

1.6016

Support

1.5960

1.5928

1.5890

Japanese Yen (JPY) –The Yen strengthened against the Dollar in Forex trading, with the USD/JPY setting fresh 15 year lows at 81.20, as the American market continues to weaken. The momentum is still bearish as long as the USD/JPY remains below 81.75. Overall, USD/JPY traded with a low of 81.20 and with a high of 81.80. No economic data is expected today.

USD/JPY-Last: 81.16

Resistance

81.69

82.10

82.45

Support

81.07

Canadian dollar (CAD) – The Canadian Dollar rose versus the US Dollar to reach parity between the pair. This was last reached in April. The momentum of the USD/CAD is still strongly negative for the US Dollar, and as long as the USD/CAD is below 1.0050, a short position is preferred. Overall, USD/CAD traded with a low of 1.0000 and with a high of 1.0105. Today, the Trade balance is expected at -2.10B vs. -2.70B previously.

USD/CAD - Last: 1.0002

Resistance

1.0047

1.0067

1.0121

Support

0.9994