The U.S. dollar weakened against the euro on speculation the greenback could be vulnerable to a post-Fed selloff. Investors are either taking profits before year-end or adjusting their positions ahead of the big event tomorrow. The Fed is widely expected to increase its benchmark but the focus will be on the overall monetary policy path following a first hike. The British pound, however, was forced to test its 1.5110-support before it followed the current upward trend.
Today's focus will be on Consumer Price Reports from the U.S.and U.K. As recently noticed, the market only shows a strong reaction when reports are falling short of expectations. We will therefore be looking for any surprises in CPI figures. Moreover, the German and Eurozone ZEW Survey is scheduled for release at 10:00 GMT.
9:30 UK CPI
10:00 EUR German & Eurozone ZEW Index
13:30 USA CPI
Here is where we see short-term resistances and supports:
EUR/USD
Resistances: 1.1040,1.1060,1.11
Supports: 1.0965, 1.0935, 1.09
GBP/USD
Resistances: 1.5187, 1.52, 1.5260
Supports: 1.5110, 1.5075, 1.5045
Here are our daily signal alerts:
EUR/USD
Long at 1.1065 SL 25 TP 30
Short at 1.0985 SL 25 TP 20, 45
GBP/USD
Long at 1.5190 SL 25 TP 40
Short at 1.5140 SL 25 TP 25, 60
We wish you good trades and many pips!
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