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Forex: EUR/USD with Doji clandlestick on daily and weekly frames

The EUR/USD rose up to as high as 1.3376 after a sudden bidding flow sometime after the US consumer sentiment data release. The pair remains magnetized to the opening price, intending to close the week with both Doji daily and weekly candlesticks. As of writing, the market is trading close to 1.3350.

The preliminary report for February consumer sentiment by Reuters/Michigan points to a rise from 73.8 to 76.3, beating the 74.8 consensus. US NY empire state manufacturing came in at 10.08 in February, surprising analysts that were only expecting an improvement from -7.78 to -2.00.

Although capacity utilization in the US improved from 78.8% (revised from 79.3%) to 79.1% in January, beating 78.9% consensus, industrial production fell -0.1%, instead of rising 0.2% as expected. Last month's data was revised lower, from 0.4% to 0.3%.

Despite the strong dollar rally on US manufacturing and the usual lack of commitment of G20 when it comes to forex rates, the EUR/USD bounces higher on strong EUR/JPY demand and positive stock, according to FXstreet.com analyst Valeria Bednarik. "The bears still rule the pair and if gold slide extends, there are little chances of further recoveries in EUR/USD", she wrote, pointing to key support at 1.3270 level.

Forex: GBP/USD back above 1.5500, turns positive

The British pound managed to shrug off worse than expected UK retail sales and recovered from lows versus the greenback during the New York session, turning positive for the day.
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Forex Flash: Gilts look increasingly unattractive following break lower – RBS

According to Dmytro Bondar, a Technical Markets Strategist at RBS, “From safe havens, Gilts look far less attractive, as a break of the recent ranges brought he market to the 114.58 retracement level (50% of 2012 extremes), while the former support of 116.00 has now turned into resistance. The overall bias is for a range of 114.60-116.60 with a possible recovery towards 117.80 if the latter is broken. However, this is unlikely to happen in the near-term. For the next week, we favor a range trade between 114.60 and 116.60. A break of 114.58 triggers a move to 114.00 and 113.14 – an upside break points to recovery towards 117.82.
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