By Forex Signs, Inc.
The pair CADJPY is maintaining its bullish trend from yesterday as price has breached yesterday’s 82.745 resistance level. As of this writing price is testing immediate resistance level 83.015. A bullish bias is seen in the medium term, especially if price is able to make a clear break above the resistance level targeting 83.089 area. SMA (14) for mid term suggests a bullish trend as the trend line is seen on an upward movement. RSI (14) for the mid term shows price is in neutral territory, and a bullish momentum can be sustained.
Canadian Housing Figures Expected To Boost The Loonie
The Canadian dollar is expected to rise against the US dollar as the Housing Starts is expected to increase to 174K for November. This indicator fell more than economists expected in October, which only reported 168K in September. The Bank of Canada earlier said that housing will be a hindrance in economic growth next year after several stimulus measures for homeowners resulted to no gain.
Meanwhile, the US will continue the Bush-era income tax cuts to reduce pressure on the Fed’s $600B bond-purchase program to spur US economic growth. With this measure, the US hopes to raise GDP by next year by half a percentage point to 3.1%. After announcing the agreement, US stocks mad a rally sending the S&P 500 index to highest level since the financial crisis in 2008.
Rising German Industrial Orders May Spur the Euro
For the upcoming European session a strong German Industrial Production is expected to boost the Euro against the Swiss Franc, as market consensus stands at 1.1%, after November’s report posted a fall of 0.8%. This economic indicator has more impact than the factory orders released last Tuesday. Though factory orders have only risen 1.6%, it was still a welcome development for the Euro as it tries to regain its footing following the massive sell-off last November due to the Irish bailout. Investors are now looking at the possibility of a rebound by the Euro after the European Union is now looking to find a permanent solution to the crisis the region has suffered. The Euro finance ministers though have not discussed those measures, as they believed the funds the EU has put up is sufficient enough for them to stem the sovereign debt crisis.
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