The EURUSD dropped to 1.3200 after the FOMC Meeting Minutes touching 1.3366 earlier yesterday. Only a couple FOMC members saw the possible need for more stimulus if growth slows and inflation remains low, however most participants expect the recovery to gradually strengthen and saw “little evidence of cost pressures”. Investors will be focused on the ECB Press Conference and Minimum Bid Rate today. The pair penetrated the recent trading range and with the events ahead in the calendar we may finally see a direction. Currently the pair is trading just below 1.3200 and we remain bearish for the session ahead. Support for the EURUSD is seen at 1.3174 and resistance is seen at 1.3328. The Inside View indicator on HotForex shows that 54 percent of the traders are long on the EURUSD.
GBPUSD
Despite the positive Construction PMI release from the United Kingdom which showed the fastest rate of new orders for the nations builder in over four years the Cable failed to maintain the recent strenght and lost gains yesterday. The 1.6000 level appear to be a major stepping stone for the pair. Today we have due the Halifax HPI m/m and the Services PMI releases from the UK on the calendar. Support for the GBPUSD is seen at 1.5852 and resistance is seen at 1.5987. The Inside View indicator on HotForex shows that 65 percent of the traders are long on the GBPUSD.
AUDUSD
Aussie dropped over 150 pips yesterday finding support around 1.0265 levels. The Central Bank of Australia kept the interest rate unchanged at 4.25 percent. During the Asian session the Trade Balance figures came worst than expected with readings of -0.48B. Looking ahead in the week we don’t have other important releases from Australia and the pair will be driven by the releases from the United States. Support for the AUDUSD is seen at 1.0265 and resistance is seen at 1.0383. The Inside View indicator on HotForex shows that 65 percent of the traders are short on the AUDUSD.
USDCAD
Support at 0.9890 held yesterday and the USDCAD remained trading in a tight range. With releases coming ahead from Canada and the United States we might see some action on the pair. Due to the tight range we are going to keep the support level from yesterday and change only the resistance level. Support for the USDCAD is seen at 0.9890 and resistance is seen at 0.9927. The Inside View indicator on HotForex shows that 87 percent of the traders are long on the USDCAD.
Important releases and events
GBP: Halifax HPI m/m; Services PMI
EUR: Retail Sales m/m; German Factory Orders m/m; Minimum Bid Rate; ECB Press Conference
USD: Treasury Sec Geithner Speaks; ADP Non-Farm Employment Change; ISM Non-Manufacturing PMI; Crude Oil Inventories; FOMC Member Williams Speaks
CAD: Gov Council Member Boivin Speaks