US dollar lost gains yesterday. CB Consumer Confidence from the United States on focus today

By HotForex | Daily Market Analysis | Tue, Mar 27, 2012

Euro rallied against the dollar during the speech of the chairman of the US Federal Reserve Ben Bernanke testing 1.3360 levels. Bernanke said that while he’s encouraged by an unemployment rate which has dropped to 8.3 percent, further easing will be required to help continue the trend. The rally of the EURUSD was well supported by news from Europe that the EU is looking to increase the size of its bailout fund. ECB has been focused on increasing liquidity through ensuing cheaper
funds for its regions banks.


The potential next target for the pair is 1.3500 and with the latest price action we might see it in the coming days. Support for the EURUSD is seen at 1.3242 and resistance is seen at 1.3364. The Inside View indicator on HotForex shows that 65 percent of the traders are short on the EURUSD.


GBPUSD

The cable broke back above 1.5900 and retested the 1.5975 highs driven by the talks of the larger European bailout fund, the hints of further stimulus out of the FED and theGerman Business Confidence result which climbed to an eight month high. The 1.6000 key target is on a very close distance and it should be tested in the next 24 hours. Support for the GBPUSD is seen at 1.5855 and resistance is seen at 1.5970. The Inside View indicator on HotForex shows that 81 percent of the traders are short on the GBPUSD.



AUDUSD

Aussie made a comeback yesterday after touching the 1.0330 levels last week. The pair pushed past 1.0500 touching the 1.0545 levels. AUDUSD buyers are still cautious with last week China related selling. This week the pair will be mostly driven by the news coming out of the United States. Support for the AUDUSD is seen at 1.0437 and resistance is seen at 1.0576. The Inside View indicator on HotForex shows that 64 percent of the traders are short on the AUDUSD.


USDJPY

USDJPY pushed higher yesterday, but the pair remains still below the latest highs. The move was driven mostly by the Yen crosses which provided much of the Yen weakness. The outlook is for range trading in the next days. Support for the USDJPY is seen at 82.44 and resistance is seen at 83.08. The Inside View indicator on HotForex shows that 78 percent of the traders are short on the USDJPY.


Important economic releases and events:

EUR: GfK German Consumer Climate
GBP: CBI Realized Sales
USD: S&P/CS Composite-20 HPI y/y; CB Consumer Confidence; Fed Chairman Bernanke Speaks