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US durable goods orders next: impact on EUR/USD

FXstreet.com (Córdoba) - The US Census Bureau will publish today the Durable Goods Orders reading for April. While March figure has been already downwardly revised to -6.9%, analysts median forecast calls for a 1.5% increase but much of that gain will be due to autos and aircraft.

"With previous negative readings and little certainty coming from the FED, the final reading needs to surprise strongly to the upside to trigger dollar gains on hopes QE will see an end this year", says Valeria Bednarik, chief analyst at FXstreet.com. "If the number disappoints again, dollar current bearish downward correction, may turn into a stronger bearish trend".

However, many investors may be unwilling to take positions ahead of the long weekend in the US. The EUR/USD hovers around 1.2960/70 ahead of the New York session, having printed a high of 1.2993 in the wake of strong German IFO. If the pair breaks above 1.3000, next resistances could be faced at 1.3030 (high May 14) and 1.3050 (high May 10). On the other hand, supports are seen at 1.2900 (10-day SMA/psychological level) and 1.2820 (low May 23).

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