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Forex Update Pre-NFP Circus

Forex Update Pre-NFP Circus

Eur/Usd made a move higher in European trade that had all the hallmarks of an automated play from a major institution; it came out of nowhere, 30 minutes into the European equity market open. At re-test of support at 1.2290 needs to be seen before getting long.

Gbp/Usd absorbed a swath of economic reads on Thursday, none of which were overly negative, and all of which should aid 1.4950 holding as support. Long breaks now deal with resistance at 1.5000 and the 100-day SMA area.

Aud/Usd has held steady at 0.8350 support but is showing no real inclination to move too far either way, and the bullish trend looks to be in danger of dissolving. Australian economics are still robust, but speculative trade may have already priced in interest rate differentials on the pair.

Usd/Cad may be impacted by the Canadian Bank Holiday on Thursday, as traders review the recent test of 1.0650 resistance. If crude oil trade can hold $72.50 support, this may be the swing point high area on the pair.

Usd/Jpy is getting absolutely hammered lower in trade on Thursday, and is taking out support at 87.00 with ease as global equity trade has regional markets all at the lows of the year. The move to unwind dollars for yen really is a strong indicator that the post-G20 rhetoric has teeth, and that the bloated Usd outlook may not be supported by speculative Treasury market trade for too much longer.

Disclosure: Nothing Open