USD Weakens across the Board and Waiting Tomorrow!
USD Weakens across the Board and Waiting Tomorrow!
GDP trailed estimates, jobless claims rose heavily last week, while revision to GDP growth showed the economy did contract in the last quarter of 2008, shredding the dollar into pieces, though despite all that the manufacturing sector expanded for the fist time in six months which helped the dollar slightly yet it’s still softer against majors.
The euro was able to set near strong resistance levels as it breached 1.5580s to head towards 50% Fibonacci correction at 1.5670s striking the high above at 1.5699 near 1.57; the euro fell from there to trade now around 1.5640s to try to attempt 1.5670s once more and if the euro was able to consolidate above that level it might recreate the upside scenario for the European currency while as long as its closing below that level we will still favor the bearish scenario.
The pound hit major resistance level at 1.9920s yet couldn’t infiltrate it to fall now trading at good levels at 1.9860s which as far as the pound manages to stay trading above this level will strengthen the upside potential for the pair to target 2.00 barriers after breaching 1.9920 and 1.9960 levels, while momentum might favor the reversal to the upside yet the volume is needed to pressure the pair to the upside and it all weighs on the dollar’s strength that was weakened with the data and trimmed hike bets, and now all in focus on the nonfarm tomorrow.
Once again the USDJPY that lacks upside momentum trading within overbought areas failed to breach 108.40s falling to set the low at 107.56 yet now its trading higher at 107.80s which is our risk limit, shall the pair fail to consolidate above it then the targets are to be at 108.40s once more while consolidating below that level we’ll target 107.20s and breaking that level sets us once more at 106.60s.
Crown Forex
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