The Case-Shiller Housing Price Report and the Consumer Confidence report helped trigger a break in the stock market which turned the Dollar around at the mid-session.
The Case-Shiller Housing Price Report and the Consumer Confidence report helped trigger a break in the stock market which turned the Dollar around at the mid-session. The housing number showed an increase in prices while he consumer confidence report showed an unexpected drop.
The EUR USD gave back all of its early gains and is now trading lower. The charts indicate that the retracement zone at 1.4762 to 1.4696 is the next key downside target and support area.
The GBP USD is trading a little better but mostly rangebound. The downside target remains 1.6198 to 1.6082. There may be a short-covering rally which takes this market back to 1.6471.
Downside pressure has been on the USD JPY all day. End of the month repatriation by Japanese companies is the reason behind this afternoon’s strength in the Japanese Yen.
Short-term traders should watch for a break to 91.20. The upside objective remains 92.88.
The USD CAD is trading lower at the midsession. Volatility has been the highlight of the day as trading has been very active in the equity and crude oil markets. Now that the upside target in this currency pair has been reached, traders are now waiting for a correction to 1.0598.
Volatile equity markets helped keep a lid on the earlier rally in the AUD USD and NZD USD. Overnight China announced that its industrial production will be up during the 4th quarter. This helped the Aussie and Kiwi rally nicely in the morning, but these gains were lost after the equity markets began their break.