FXstreet.com (Barcelona) - The USD is falling on the board after the Obama's new Bailout plan was announced and the worst than expected Jobless claims and durable goods orders data.
The EUR/USD has broken the 1.2760 resistance, tested the 1.2800 level and dropped strongly towards support at 1.2760 on the back of dreadful U.S. Jobless claims and durable goods data. The volatility is high, if the pair continues falling, the EUR/USD could drop towards intra-day low at 1.2690, and below there next support line remains at 1.2660 (Feb 24 low), On the upside, the Euro could attempt to break next resistance level at 1.2815.
The GBP/USD is launching a new attack to the 1.4360 resistance level after it rises around 120 pips from the 1.4250 to the 1.4370 in the last two hours. If the pair breaks it, could go towards the 1.4435/50 band and 1.4575, as Feb 25 high.
The USD/JPY has fallen 50 pips in the last hour from 98.20 to 97.65. Currently, the pair is trading just below the 98.00 resistance, if the pair continues in the downside land, it could go to the 97.30 support level in a correction movement.
According to Valeria Bednarik, FXstreet.com Collaborator, the market is reacting to the biggest US deficit since World War II: An anticipated publication of what U.S. president Barak Obama is about to discuss in a few minutes says that he will forecast a 2009 deficit of $1.75 trillion in a budget proposal including a request of as much as $750 billion in new aid to the financial industry. The huge deficit would represent 12.3% of U.S. GDP the largest share since World War II, but also the downturn is in line with such historical levels. Obama has promised to cut it half by the end of his first term.