Every day FX Report

The dollar held steady in light trading on Wednesday, supported by higher U.S. bond yields as data suggested a modest pace of economic expansion into year-end, albeit perhaps not enough for the Federal Reserve to quicken its pace on future rate increases. Analysts said gains in Wall Street stock prices also underpinned support for the greenback, which snapped its three-session losing streak. The latest snapshot on the consumer sector, which accounts for two-thirds of the U.S. economy, offset disappointing data on durable goods orders and new home sales. The euro slipped 0.35 percent to $ 1.0915 and 0.6 percent to 131.88 yen. The dollar fell for a fourth straight session against the yen, last down 0.2 percent at 120.83 yen. Analysts expected the greenback to stay within its recent trading ranges against major currencies as trading volume falls further due to year-end holidays. U.S. and most European financial markets will close on Friday for Christmas. Meanwhile, a downward revision to 0.4 percent for UK GDP had little impact on sterling, which was up 0.3 percent at $ 1.4873. It had hit an eight-month low of $ 1.4806 on Tuesday, with analysts citing growing concerns about a British exit from Europe following a referendum on the issue which could be held as early as June. Oil rose more than 3 percent on Wednesday in thin, pre-holiday trading, buoyed by a surprise drop in U.S. crude inventories, but prices stayed near multi-year lows as global supplies remained abundant and OPEC lowered the demand outlook for its exports. Ahead of the Christmas holiday on Friday, volume in the front-month U.S. crude contract was around 265,000 lots by midday, slightly less than the 294,000 lots on Tuesday.

EUR/CAD (Daily)

The European currency was strong over 2 years but at the level around 1.550 the bears took the control. As against the most important currencies the euro began its fall and almost the whole 2014 it depreciated against the CAD. Not even the suppor level at 1.3369 could stop the fall, but the level around 1.3064. Recently the bulls broke through the resistance around 1.5291. The Momentum is pointing out for a possible downward movement.

Support Levels around	Resistance Levels around
1.4017	1.5291
1.3369	N/A
1.3064	N/A

AUD/USD (Daily)

This currency pair was moving in an downward trend channel since the beginning of August. Not at least a strong U.S. data helped the bears to take control. The support line at 0.7259 has stopped the depreciation of the Australian dollar, but was broken recently. Now there doesn´t seem to be a reliable support level.The MACD is moving under the Centrer line in the overbought currency area downward, but longterm towards the middle as a possible signal for buyers.

Support Levels around	Resistance Levels around
0.6913	0.7420
N/A	0.7846
N/A	N/A

NZD/JPY (Daily)

In this chart one can see that at the moment the NZD is coming back after a deep fall at the end of the last year. Recently it has lost around 800 pips within one month. It broke through the support level at 81.72, and could fall further till 74.64. RSI and the Momentum are moving slightly upward.

Support Levels around	Resistance Levels around
74.64	89.02
N/A	91.91
N/A	N/A

Every day FX Report