USD/Majors range bound ahead og US GDP

Not much to go by in the European session so far. The USD has been on the bid side after yesterday's rally in EURUSD and GBPUSD. Also USDJPY finding some support on weaker then expected Japanese data

MAJOR HEADLINES – PREVIOUS SESSION
USD

The dollar showing very little sign of direction ahead of US GDP and core PCE this afternoon, but will with certainty give direction until the NY close. Look for above/below forecast to set the trend. 1.2715 is key for the short term bullish bias to continue and 1.2650 for the downside to resume the daily bearish trend.

NZD

RBNZ left rates at 7.25% which send NZD lower across the board, but yesterday's better then expected trade balance kept the pair supported through both the Asian and European session. The pair remain attractive as long as low volatility is in the market. we will once again mention that a pick up in volatility should put a strain on NZD especially against crosses such as JPY, CHF and AUD:

JPY

Yesterday and comments added on japanese data.

Not many comments in the market concerning the JPY other then some analysts who say the downside looks more attractive. but we ask why? Volatility is still at historical lows, which leaves us with the impression that why not pick the carry, they still remain low risk. CPI tonight in Asia could give some direction heading into tomorrow's European session. There is still rumors of a possible hike in December by BOJ, but look at this scenario as very unlikely unless CPI tonight come in way above expectations. USDJPY finding support after data and a better then expected GBP figure from the US should send the pair for a test of 119.00.

Euro/US Dollar    

EURUSD  (1.2682 @ 11:06 GMT)

Support:

1.  1.2460 daily base which coincides with 1.2465 38% retracement

2.  1.2320 double top form march 2006

3.  1.2260 bull trend line from March 2006

4.  1.1635 38% retracement (0.8350-1.3667), also low from 2005.

Resistance:

1.  1.2670 old wave support from late September 2006.

2.  1.2764 high from October 2006.

3.  1.2940 old top from August 2006.

4.  1.2980 long term inverse head-and-shoulder target.

 Resist.

1.2871

1.2768

1.2730

1.2682

1.2627

1.2561

1.2458

Support

British Pound/US Dollar    

GBPUSD  (1.8914 @ 11:06 GMT)

Support:

1.  1.8520 lower end of the bear channel from early August 2006.

2.  1.8500 daily base support.

3.  1.8090 wave support from July 2006.

4. 1.7330 long term bull trend support from 2001.

Resistance:

1.  1.8860 old top from late October.

3.  1.8900-5 top from early October along with 615 retracement (1.9072-1.8632).

4.  1.9145 Old top from August.

 Resist.

1.9184

1.9025

1.8965

1.8914

1.8806

1.8708

1.8549

Support

US Dollar/Japanese Yen    

USDJPY  (118.51 @ 11:06 GMT)

Support:

1.  118.40 intra-week retracement support.

2.  116.75 daily base support.

3.  113.35 weekly base support.

4. 109.00 key support form confirmation of a monthly downward trend.

Resistance:

1.  119.20 choppy range base from early October.

2.  119.90 old top from mid-October.

3.  121.40 old top from December 2005.

4.  1250.00 50% retracement (form 147.63-101.67).

 Resist.

120.40

119.50

118.94

118.51

118.05

117.72

116.82

Support