Te US Dollar continued its fall on Wednesday after a spate of data releases increased optimism in the US for an economic recovery. Three key pieces of data were released in the last trading session before the Thanksgiving holiday on Thursday and all three were better than expected. On the jobs front the US shed less jobs in this reading than it has for over a year, this while retail sales jumps higher than anticipated and home prices increase for the fifth straight month. Minutes were also released fro the Federal Reserves meeting in which it was revealed that the Fed as a whole saw the falling Dollar as an orderly occurrence.
All of these combined brought risk appetite back into the markets and pushed the Dollar to a sixteen month low on the ICE futures Dollar index, a non traded index which matches the performance of the Greenback to 6 major currencies.
At 10:25PM GMT, the US Dollar was trading down .91% to the Euro to 1.5088, down 1.21% against the Japanese Yen to 87.48, down .55% versus the British Pound to 1.6674, down .84% against the Canadian Dollar to 1.0489, down 1.15% to the Australian Dollar to .9293 and down .86% versus the Swiss Franc to .9998.
The EUR/USD rose as high as 1.5094 on Wednesday and the break at the 1.5061 resistance shows that there is a mid-range rally going on. For now, inter-day bias remains on the upside and a further rally should be seen to 100% projection of 1.4626 to 1.5047 from 1.4801 at 1.5222 next. On the downside, anything below 1.4998 can turn intraday bias neutral and bring consolidation. But downside should be contained above 1.4801 support and bring another rise.
Written by Finexo.com