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UFXBank Forex Outlook: Dollar Continues to Advance

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar continues to advance versus the other major currencies in Forex trading, after Friday’s better than expected U.S. jobs data eased pressure on the Dollar in the wake of the Federal Reserve’s asset purchase plan announcement. The NASDAQ fluctuated around zero and the Dow Jones decreased by 0.33%. Crude oil strengthened by 0.2%, closing at $ 87.06 a barrel, the highest price in two years. Gold (XAU) rose by 0.4%, closing at $1403.20 an ounce, a new historic record. No major news is expected today.

Euro (EUR) – The Euro fell for a second day versus the Dollar amid concern that some governments in the region will struggle to pay their debt, curbing demand for European assets. The EUR/USD has broken the 1.4000 level and has been trading below it since yesterday. As long as the price is below this level, a short position is preferred. Overall, EUR/USD traded with a low of 1.3887 and with a high of 1.4085. Today, German Final CPI is expected to remain at 0.1%.

EUR/USD – Last: 1.3861

Resistance

1.3925

1.3980

1.4085

Support

1.3850

British Pound (GBP) – The Pound was down against the Dollar, falling to a 2 day low as the Dollar recovered ground on the back of Friday’s data .The main momentum of the GBP/USD is absolutely bullish, although it has fallen in the last two days. As long the price is trading above 1.6080 level and above the 10 moving average, a long position is preferred. Overall, GBP/USD traded with a low of 1.6104 and with a high of 1.6213. Today, Manufacturing Production is expected to remain at 0.30%, trade balance is expected at - 7.90B vs. -8.20B prior.

GBP/USD - Last: 1.6131

Resistance

1.6165

1.6210

1.6260

Support

1.6100

1.6065

1.6000

Japanese Yen (JPY) –The Yen fluctuated against the Dollar after the Bank of Japan said that there were signs of a moderate recovery in Japan’s economy which led investors to prefer the Japanese stock market. The USD/JPY continues to trade around the 80.00-81.00 area. The main support line on the daily chart is still located at 80.00, and the momentum is still bearish as long it‘s trading below the 82.00 level. Overall, USD/JPY traded with a low of 81.00 and with a high of 81.43. No economic data expected today.

USD/JPY-Last: 80.93

Resistance

81.00

81.25

81.50

Support

80.60

80.45

Canadian dollar (CAD) – The Canadian Dollar weakened versus the Dollar as the Dollar rallied against most major currencies on reduced demand for assets related to economic growth. The Canadian housing starts fell more than expected (168K vs. 181K), which supported a weaker Canadian dollar. The support level of the USD/CAD on the four hour chart is located at 0.9980, and if the USD/CAD breaks below this level, a short position is preferred and the momentum continues to be positive for the Canadian Dollar. Overall, USD/CAD traded with a low of 0.9994 and with a high of 1.0055. Today, BOC Gov Carney Speaks.

USD/CAD - Last: 1.0042

Resistance

1.0055

1.0100

1.0160

Support

1.0010

0.9990