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UFXBank Forex Outlook: USD Can't Hold the Momentum

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar fell against most of the major currencies after the jump in the previous day’s Forex trading. A positive economic forecast was published today by the beige book. The Stock Markets in U.S. closed positive with the Dow increasing by 1.18% and the Nasdaq rose by 0.84%. Crude Oil rose 2.9%, closing at $81.77 a barrel, while Gold (XAU) increased by $8.20, to close at $1,344 an ounce. Today, Initial Jobless Claims are expected at 455k vs. 462k previously.

Euro (EUR) – The Euro rose versus the Dollar after the German PPI came out at 0.3%, better than the expected 0.2%. Trading above the 1.3700 support level keeps the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.3699 and with a high of 1.3991. Today, the manufacturing PMI is expected at 53.20 vs. 53.70 prior.

EUR/USD – Last: 1.3920

Resistance

1.3970

1.4101

Support

1.3792

1.3700

British Pound (GBP) – The Pound rose against the Dollar after U.K. Chancellor of the Exchequer George Osborne detailed his plan to almost eliminate the nation’s 156 billion pound ($246 billion) budget deficit. Trading below the 1.5870 resistance level keeps the momentum of the pair negative for the day. Overall, GBP/USD traded at a low of 1.5654 and a high of 1.5878. Today, Retail Sales are expected at 0.4% vs. -0.5% previously.

GBP/USD - Last: 1.5797

Resistance

1.5840

1.5878

1.5988

Support

1.5653

Japanese Yen (JPY) – The yen rose against the Dollar ahead of economic data that may add to the cause of more monetary easing by the Federal Reserve, which will debase the currency. Trading below the resistance level of 81.70 will keep the momentum positive for the Yen. Overall the USD/JPY traded at low of 80.84 and a high of 81.82. No major economic data is expected today.

USD/JPY-Last: 81.17

Resistance

81.28

81.70

82.12

Support

80.83


 

Canadian dollar (CAD) – The Canadian Dollar increased against the green back after the wholesale sales came out 1.2% better than the expected 0.5%. Commodities markets rose also against the U.S Dollar after the crash the day prior. The USD/CAD pair seems to be on a bullish trend as long as the pair remains above the 1.0200 support level on the daily chart. Overall, USD/CAD traded with a low of 1.0204 and with a high of 1.0347. Today, The Leading Indicators are expected at 0.2% vs. 0.5% previously.

USD/CAD - Last: 1.0250

Resistance

1.0279

1.0360

Support

1.0202

1.0137