Good News Continuing

Good morning welcome to a new day in FX market. Thursday good news continued last Friday, as CPI and Industrial Production in the US both come above economist expectations, taking greenback quite higher against most majors. With fundamentals continuing helping dollar, last week FED’s actions, (a conservative 25 rate cut and an alternative method to introduce more liquidity) seems to be enough to fade recession ghost; in this scenario dollar managed to pass trough key points against it’s rivals, pushing Euro close to 1.4400, Japanese yen above 113.00 and GBP under 2.0200. With a week full of fundamental news both sides of the Ocean, and close to the end of the year, we expect these, to be quite interesting days in forex market. Today we have the following news, East Time: 08:30 Current Account Q3 (Expected -$183.0B Previous -$190.8B): this report informs about the net flow of current transactions, including goods, services, and interest payments, between countries. No doubts the less relevant for this session. 08:30 NY Empire State Index for December (Expected 21.0 Previous 27.4): This index aims to gauge the current condition of New York's manufacturing industries as well as determining how company executives believe they will do in the following semester; this report doesn’t usually imprint big movement to the market but today being alone, could do so. 09:00 Net Foreign Purchases for October (Previous -$26.4B): This report, as it measures the net foreign purchases of US equities and financial values is one of the biggest and more expected of the month as it shows us how strong is for the rest of the world, the American currency; as you can see, today will be released the December info, this report has a two months delay, but generally produces interesting moves in the market. EUR/USD is right now at 1.4412, still bearish yet, over sold in 4 hours charts, after these last two days rally: a bullish correction will find its first resistance around 1.4436, followed by 1.4467, 1.4490 and finally the zone around 1.4920. Supports, in case of a continuation will be at 1.4390, followed by 1.4373, and finally 1.4345. USD/JPY is quoting at 113.30 and the pair continues will bullish strength: above 113.60, last Friday’s maximum and first resistance for today, the pair could easily continue to the zone around 113.80, 114.05 and finally 114.27, a weekly descendant trend line. Under 113.20, the pair will find its next support at 112.93, followed by the zone around 112.60 and finally 112.41. GBP/USD is right now at 2.0166 after breaking to the downside these last days range: under 2.0140, first support for today, the pair could easily continue to 2.0110, 2.0082, and finally the zone around 2.0035. Resistances in case of a probable correction, will be at 2.0179, followed by 2.0216, the zone around 2.0260 and finally 2.0300. Have a great trading day!