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Wednesday, March 22nd
The EUR/USD pair keeps its positive mood on Wednesday, staying in the region of 1.08. The euro continues to benefit from various opinion polls, that are predicting E.Macron’s win at French election race, outperforming its far-right anti-EU competitor M.Le Pen. Moreover, the euro is getting additional support from risk-off market profile, allowing the pair to refresh its daily tops at 1.0818. Looking ahead, today only data from the US housing market will be able bring some impetus to the pair, so broad risk-off moods will continue to drive the market this Wednesday.
The AUD/USD pair is trading in tandem with commodities, having refreshed its weekly lows at 0.7650 mark this morning. The Aussie remains under strong pressure lately, as ongoing weakness of the commodity market, especially in copper, is significantly weighing the pair. Moreover, shrinking risk appetite is driving flows away from higher-yielding assets, such as Australian currency, additionally underpinning bearish sentiment around the pair. However, the greenback continues to suffer from recent events, held on economic field of the US, allowing the pair to recover some pips this morning. Today traders will set up their focus on existing home sales data, that are scheduled on NA session, for fresh short-term trading impetus.
The USD/JPY pair extends it bearish bias for the seventh consecutive session in a row, as JPY bulls are capping any greenbacks recovery attempts on the back of strong risk-off moods, seen lately. Seems that risk aversion moods are at its full swing in early Europe, allowing the pair to refresh its 4-month lows at 111.15 spot and also limiting the pair from any further gains. Moreover, this morning the Japanese economy provided the market with upbeat trade balance data, that are also collaborating to pair’s bearish trend. Today economic docket remains fairly quiet, with only US housing data scheduled in it, so the pair, most probably, will keep following risk trend during this trading session.
The GBP/USD pair continues to stay in positive territory, having refreshed its four-week highs just a few pips above 1.2500 level during Asian trading session. The dollar keeps losing ground against its main competitors for a couple of sessions in a row in response to dovish remarks of Fed Chair J.Yellen, stated last week. Additionally, the pound may find some support from the latest news, that UK PM T.May rejected the second Scottish referendum of getting independency, while yesterday’s upbeat UK inflation data are still positively influencing the UK currency. However, strong risk-off moods are gripping the market lately, limiting further pound’s gains. On the data front, the UK docket remains absolutely empty this Wednesday, while the US economy will publish Existing Home Sales report later in NA session.
The main events of the day:
US Existing Home Sales – 16.00 (GMT +2)
US Crude Oil Inventories – 16.30 (GMT +2)
RBNZ Interest Rate Decision – 22.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0682 R. 1.0882
USDJPY S. 110.70 R. 113.36
GBPUSD S. 1.2283 R. 1.2591
USDCHF S. 0.9873 R. 1.0033
AUDUSD S. 0.7640 R. 0.7774
NZDUSD S. 0.6996 R. 0.7112
USDCAD S. 1.3226 R. 1.3428
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