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Forex Market Update EURUSD continues rally despite solid data out of the US!
Both US consumer confidence and existing home sales came out better than expected, but EURUSD was still able to close above 1.2415
MAJOR HEADLINES â€“ PREVIOUS SESSION
â€¢ German CPI (mom) April, out at 0.4% vs. 0.2% expected.
â€¢ German CPI (yoy) April, out at 2.0% vs. 1.9% expected.
â€¢ Bank of Canada rate announcement, out at 4.00% which is in line with expectations.
â€¢ US consumer confidence April, out at 109.6 vs. 106.2 expected.
â€¢ US existing home sales March, out at 6.92M vs. 6.66M expected.
â€¢ ABC consumer confidence April 24, out at -11 vs. a prior reading of -7.
â€¢ Richmond Fed. manufacturing index index April, out at 18 vs. 10 expected.
THEMES TO WATCH â€“ UPCOMING SESSION
We saw an interesting development in EURUSD yesterday as both US consumer confidence and existing home sales surprised to the upside, but the market showed no mercy for the USD and EURUSD was able to trade above 1.2430. We have a lot of data out of the US today and Friday which will tell us weather or not we have a real trend. We have seen substantial upside move, which has led to just another sell-off into the range that we have gotten so used to. So if EURUSD can retain the recent gains we should starting looking at a 1.2900 target further out.
USDJPY is fighting back, but it looks to be temporarily. It is important that we start seeing strong numbers out of Japan, especially CPI data, because the recent sell-off that we saw in USDJPY has been caused by the G/7 talking the JPY stronger which is not durable looking ahead.
Note: the support/resistance levels used in the matrixâ€™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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