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Forex Trading Strategies.Look for EURUSD to test 1.1840 in the upcoming session
EURUSD bounced off fibo support at 1.1840 in a thin traded market and a break here would give scope for further downside, supported by yesterday's US data.
MAJOR HEADLINES – PREVIOUS SESSION
• Current Account deficit widened to a record $5.071 billion (8.4% of GDP) vs. expections of a $4.819 billion deficit which in part is caused by the severe weakness in the export sector due to the high kiwi dollar. Services balance was worse than expected and might have implications for a lower than anticipated GDP number tomorrow. NZDUSD drifts lower, currently at 0.6821 bid.
• S&P comments on New Zealand Current Account saying that it "Remains a concern" and is unsustainable. NZDUSD currently bid at 0.6831 trading at 5 week lows.
• GDP expected to have increased 0.3% for 3Q.
• Aussie New Motor Vehicle Sales rises 2.2% from a month ago but still falls 1.0% from a year ago. Previous figures were massively negative, both monthly and yearly.
THEMES TO WATCH – UPCOMING SESSION
The 3 pairs to for in the upcoming trading day is EURUSD, USDJPY and USDCAD.
USDCAD may find some renewed selling interest below 1.1770 if we see strong retail sales data out at 13:30 GMT.
USDJPY looks to test 118.20 resistance, a break would give the pair relief medium term and a possible test of 2005 highs.
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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