18Jan
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IForex Market Trading Signals and News – 18 January 2016

INTERNATIONAL CURRENCY BUZZ :

  • Forex -Aussie, kiwi, Canadian dollars dive 1 percent or more on oil price tumble
  • Forex -Dollar remains broadly lower on U.S. economic reports
  • Forex -USD/CAD hovers near 13-year highs on oil rout

EUR/USD
EUR/USD surged to near one-month highs, as a wave of soft U.S. economic data potentially increased the probability that the Federal Reserve could delay its next interest rate hike beyond the first quarter of 2016. The currency pair traded in a broad range between 1.0855 and 1.0984 before settling at 1.0916, up 0.0051 or 0.47% on the session. The euro ended the week virtually flat against the dollar, down 0.15%. After tumbling approximately 10% against the dollar in 2015, the euro is up approximately 0.5% against its American counterpart over the first two weeks of the new year. The euro last eclipsed 1.10 versus the dollar on December 16. EUR/USD likely gained support at 1.0538, the low from December 3 and was met with resistance at 1.1352, the high from Oct. 22.The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, lost more than 0.40% to an intraday low of 98.42, before closing at 98.99. The index remains near 12-month highs from December, when it eclipsed 100.00.

GBP/USD
The pound dropped to fresh five-and-a-half year lows against the U.S. dollar on Friday, as sentiment remained under pressure amid an ongoing oil rout and as investors awaited the release of U.S. economic reports later in the day.GBP/USD hit 1.4339 during European morning trade, the pair’s lowest since May 2010; the pair subsequently consolidated at 1,4357, sliding 0.39%.Cable was likely to find support at 1.4229 and resistance at 1.4445, Thursday’s high.Investors remained cautious after Brent crude, the global benchmark, fell below the $30 per barrel threshold on Friday to $29.93, the lowest level since 2004, pressured lower by a global supply glut and fears of a slowdown in China.Meanwhile, the dollar remained supported after the U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the week ending January 8 increased by 7,000 to 284,000 from the previous week’s total of 277,000.

RECOMMENDATION :

  • BUY GBP/USD ABOVE 1.4270 TARGET 1.4290 1.4330 SL 1.4230
  • SELL GBP/USD BELOW 1.4200 TARGET 1.4180 1.4140 SL 1.4240

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