By Forex Signs, Inc.
The EURUSD pair is currently in consolidation between the 1.3279 support line and 1.3353 resistance line. However, a bullish trend is brewing as price is now near the resistance line. On the short term time chart, candlestick formation shows an upward pattern signalling a bullish trend. EMA (14), on the same time chart, shows a bullish pattern as the trend line is steeply pointing to the upside. RSI (14) for the short term, medium term, and long term time chart shows price is within neutral zone and a bullish pattern may continue its momentum. MACD in the medium term time chart suggests a buy signal with the fast line crossing above the signal line, while above the 0 line. If price is able to breach the resistance line it will only confirm its bullish trend.
American Session Outlook
Yesterday, Statistics Canada released their Building Permits data for the month of October. The change in the total value of new building permits issued negated to -6.5 percent from a sky-rocketing 6-month high of 15.3 percent. Capitalists look forward to this data as it is correlated to the real estate market. In line with this, the Loonie played sideways going downwards from an upward trend last Friday. Investors played it safe during yesterday’s trade partly because of the unexpected reversal of Building Permits statistics. However, on the bright side, Richard Ivey School of Business also released its statistic on Purchasing Managers Index. The month of November had been fruitful for purchasing managers of Canada as the index escalated to 57.5 points compared to last month’s 56.7 points. This is probably the reason why the Loonie just played it sideways instead of going an abrupt downtrend against the Japanese Yen.
At present, the Loonie is expected to play safe and pursue a consolidated trend against the Yen because the Overnight Rate is set to be released later today. Assumptions say that the rate will stay the same at 1.0 percent due to the stability in Canada’s surging economic recovery from late last year’s recession. There is both strength and a slowdown in different components on the domestic side, but a strong drag from the foreign trade on which Canada depends for about a third of its GDP.
Meanwhile, the Greenback is anticipated to recover from its setback against Euro today. The Euro may reverse recent gains versus the Greenback should the currency fail to advance above resistance at $1.3471. Also, the Department of Treasury is supposed to reveal the Treasury Currency Report today. According to FED Chairman Ben Bernanke, the central bank may boost Treasury purchases. This data in return is assumed to give the Greenback a bullish momentum against its major counterparts.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
