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Dollar Surges Higher
Written by article default Wednesday, 17 November 2010 13:04
Coming Up Today (all times GMT)- GBP Claimant Changes (9:30)
- USD CPI (13:30)
- USD Building Permits (13:30)
- NZD PPI (21:45)
EURUSD
The EURUSD hit heavy selling pressure yesterday after it broke below its 1.3560 support. This triggered a quick move below the 1.3500 level. With negative sentiment increasing in the pair, Forex traders are expected to continue to be quick on the draw with their selling. As such, traders are watching yesterday’s low of 1.3450 which could once again trigger selling pressure if it fails. On the upside, if any favorable news from Ireland develops, it could trigger a quick rebound in the EURUSD, as the pair has very little key resistance until the 1.3600 figure.
Support/Resistance 1.3450/1.3520
GBPUSD
Similar to the EURUSD, the GBPUSD took it in the chin yesterday after it dropped below its 1.5975 support level, and traded out of its week long range between the 1.5975 and 1.6195 levels. Inflation worries and the dollar’s overall strength were the impetus of the move. Looking ahead, UK employment figures are expected to be the headline news release of the day. As such, volatility in the GBPUSD should remain high today as a worse than expected number could trigger selling towards 1.5750, while an upside surprise in the jobs sector could cause the pair to surge higher.
Support/Resistance 1.5850/1.5975