TRADING TIPS :
- Forex-Dollar hits fresh 4-year highs vs. rivals on U.S. optimism.
- Forex- Pound slips lower against stronger dollar .
- Forex-Euro slips to fresh 14-month lows vs. dollar.
EUR/USD hit 1.2763 during late Asian trade, the pair’s lowest since July 2013; the pair subsequently consolidated at 1.2757, slipping 0.18%.The pair was likely to find support at 1.2754 and resistance at 1.2864, Wednesday’s high. The euro came under pressure after European Central Bank President Mario Draghi said on Wednesday that the bank will keep its monetary policy “accommodative” for as long as needed, and will use every tool at its disposal to fight deflation.Demand for the dollar found further support after a report showed that U.S. new home sales data rose 18.0% last month to 504,000 units, the highest level since May 2008.The pound had strengthened earlier in the week as investor focus returned to the outlook for U.K. monetary policy in the wake of last week’s Scottish independence referendum.
GBP/USD hit 1.6276 during European morning trade, the pair’s lowest since September 18; the pair subsequently consolidated at 1.6293, shedding 0.28%.Cable was likely to find support at 1.6244, the low of September 18 and resistance at 1.6416, Wednesday’s high.The dollar found further support after a report on Wednesday showed that U.S. new home sales data rose 18.0% last month to 504,000 units, the highest level since May 2008.Earlier in the week, a report showed that the U.S. manufacturing sector expanded in September, matching the rate of growth seen in the previous month, which was the strongest in over four years.The strong data added to expectations that the Fed will hike interest rates sooner than markets are expecting.
1. Buy EUR/USD Above 1.2752-TG:1.2772/1.2802 SL 1.2722
2. Sell EUR/USD Below 1.2673-TG:1.2653/1.2623 SL 1.2703