A huge drop in durable goods orders from 1.9% expansion in February to 4.2% contraction in march, while the core figure which excludes transportations items contracted by 1.1% from 1.9% expansion in February. The intialy reaction was slightly risk negative, as majors pared some of the earlier gains against the greenback, however recovering now. Today's trading session kicked off with an optimistic note ahead of today's most anticipated event in the form of the FOMC meeting outcome.
The EUR/USD has retested the main resistance around 1.3220 and the 50-days SMA to retreat briefly. Meanwhile, there is a possible bearish divergence on stochastic, thus a dip below 1.3180 could resume the downside pressure, while steady trading above 1.3220 shall confirm further gains for the euro within the upcoming sessions.
Even after a surprising 0.2% first quarter contraction in the united kingdom's economy, which put the country in a double dip recession; The GBP/USD remained solid supported by the overall optimism over today's FED's decision. The bullish trend for the pair remains intact, where 1.6060 and 1.6000 are the main support levels to monitor over the near terms. On the other hand a sustained break above 1.6165 could clear the way towards 1.6300.
USD/JPY continues to fluctuate, falling to maintain a clear bias; however the overall short term bearish trend among the descending channel remains intact. However we still see 80.50-80.00 area as major support and short term juncture, where a breach above the resistance of the descending channel followed by 81.80 may resume the longer term bullish trend, eying 82.50 and 83.20 as initial targets.
Gold holds the narrow range, trading among 1650.00-1630.00 since a while, however the metal has found good support at the median of the descending channel, thus we still anticipate a retest of the top of the channel around 1665.00. To the downside, 1625.00-1630.00 should be taken to look for a deeper dip to 1600.00 areas.
Technical analysis for precious metals with major support and resistance levels and recommendations for 18-08-2009