Traders await the announcement of the Core Durable Goods Orders tomorrow (Dec. 24).
The Core Durable Goods Orders measures the change in the total value of new orders for durable goods, excluding transportation.
Because aircraft orders are very volatile, the core number gives a better gauge of orders trends.
Higher reading indicates activity increase by manufacturers.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Analysts forecast a reading of 1.00%, up from the previous reading of -1.30%.

Euro Dollar

The Euro broke the support specified in yesterday’s report 1.4260, but it stopped half way between the support & the target, as yesterday’s low was 1.4216. It looks from the channel drawn on the attached chart that 1.4298 is the limit the separates the continuation of the downtrend from its reversal, since it combines the top of the channel with the moving average SMA100.

As long as the price is below this level, the downtrend will continue, looking for fresh lows below Friday’s low 1.4260. Short-term support is at 1.4238 and breaking it would increase confidence in the downtrend, and would target 1.4153 and then the bottom of the channel which is currently at 1.4030. A break of today’s most important resistance 1.4298 would cause a jump to 1.4446, and then to 1.4502, and later to Fibonacci 38.2% for the medium-term 1.4596.

Support:
• 1.4238: Fibonacci 38.2% for the micro-term.
• 1.4153: Jul 2nd high.
• 1.4030: the bottom of the descending channel on the hourly chart, and Aug 18th low.

Resistance:
• 1.4298: the most important resistance for today, which combines the top of the channel with the moving average SMA100.
• 1.4446: Aug 5th high.
• 1.4502: Dec 15th low.

USD/JPY

In opposition to our expectations, Dollar-Yen broke 91.30, penetrating through the moving average SMA100, and breaking the top of the channel that we introduced. This break, even though it is in an opposite direction of our short-term technical outlook, should not be ignored. The price is invited to show strength against the resistance 91.78 (currently trading pips below it), and if broken, a test of the area that caught our attention 92.31-92.52 will be only a matter of time. And if this area is broken, the Dollar will take off, towards March 19th low 93.53. On the other hand, if the price fails to create a sustained break of 91.78, a drop towards 90.90 where the moving average SMA100 is waiting, will follow. And if this level is broken, the price will drop towards the important 90.03, and if broken we are to see 89.55.

Support:
• 90.90: intraday support.
• 90.03: Fibonacci 61.8% for the whole move from 88.91 to 91.85.
• 89.55: previous important intraday low.

Resistance:
• 91.78: Jul 8th low.
• 92.31-92.52: resistance area created between Oct 27th & Sep 21st tops.
• 93.53: Mar 19h low.

Analysis by: http://www.Forexpros.com - Written by Munther Marjifor Forexpros

Forexpros offers the most definitive Forex portal on the web. It contains industry leading market analysis, up-to-the minute news and advanced trading tools which provides brokers, traders and everyone involved in the financial market with an all-round guide to Forex.

Disclaimer: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.