Review of FOREX 17.04.08

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USD

Over the last trading day USD fell to one more level. The cause was a general uncertainty of investors in the American economy.
Yesterday's statistics were not very optimistic. The Consumer Price Index showed an increase by 0.3% and CPI ex food & energy increased by 0.2% during the month. Housing Starts declined once again, reaching all 947 thousand and Building Permits fell to 927 thousand.
The data show that the construction sector continues to slow down, while inflationary pressures are still remaining within acceptable ranges and can lower interest rate once again, but as most analysts expects we will see a surge of inflation soon.
Today in the USA block of statistics will be issued, but it will not have great significance. Some fluctuation in the currency market could be caused by Jobless Claims and Leading Indicator, but, as it is expected, the market will move under the effect of technical factors.


EUR

Yesterday EUR | USD broke 1.5850 resistance level, but strong resumption of growth has not happened yet, as the market has still uncertainty about the future direction of motion. On the one hand, the continuation of decline in the American economy increasingly convinces to lower the dollar. On the other hand, the statement about concern of G7 heads about relatively low dollar can cause a strong downward pressure at any time.
Nevertheless, the price has been able to be above the level of 1.5850, which now is a strong level of support, and from which it is recommended to open positions to buy the pair if correction continues.



CAD

USD | CAD is at a good level to buy it, but the overall uncertainty in the future movement of the American currency restrains investors from buying dollar against the Canadian dollar.
Opening positions on the pair is not recommended before issue of CPI, which will be published in 15:00. Reducing of the index could put pressure on the Canadian currency, because there will be more opportunities for lowering the interest rate by the Central Bank of Canada.
At present USD | CAD has two levels of support, from which turnout is likely to happen and positions should be opened: 0,9925 (area of closure of the second three-year cycle, the completion of 2007), 0,9815-0.9845 (area of closure of February and area of local minimums).
Before opening positions on buying it is recommended to consider 1.0250-70 as the first intermediate target.