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Forex Trading StrategiesCAD weaker as carry trade unwinding continues.
USD/CAD broke to the upside yesterday as the unwinding of CAD/JPY carry trades continued. GBP look a bit weak but generally the Majors are fairly quiet.
MAJOR HEADLINES – PREVIOUS SESSION
The market seem to be moving into quiet mode a bit early ahead of the Christmas break - the past sessions were very quiet compared to last weeks action.
• UK RICS House Price Balance
came out as +4% vs. -5% expected.
• Japan Convenience Store Sales
came out at -4% versus -2.9% last.
According to RICS survey the the recovery in the UK housing market gained pace in November, with house prices rising for the first time in 16 months, and the proportion of unsold properties falling.
THEMES TO WATCH – UPCOMING SESSION
The coming session will see some important data with US Housing Starts and Building Permits -
remember the disappointment in this number last month. Furthermore the US PPI and Canadian CPI
are going head to head.
For EUR/USD, we still have 1.1940/50 to look to for support and then the final 1.1900/1.1870 area in EUR/USD, which remains in bullish mode unless those lowest levels are taken out.
Yesterdays "weak pick" the CAD, got hit by a wave of unwinding in especially CAD/JPY in last nights US session. Weaker energy prices also contributed to the move. An acceleration weaker in CAD may be due today with the Canada CPI up .
and Canada Retail Sales out tomorrow.
On Friday, we have the US New Home Sales for November just ahead of the Christmas weekend, which will tell us whether the October data (a record) was a fluke.
Note: the support/resistance levels used in the matrix’s of this document are levels derived from yesterday high, low and close. Reference in the text to other support/resistance levels will occur.
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