By DailyFX – EURUSD.In Line Economic Data.Data was relatively in line with earlier estimates across the board with most of the figures stemming from the… … region's largest economy, Germany.

Gross domestic product was reported to have expanded similar
to last quarter's figures at a 0.6 percent rate. However, notably in
the release, there were upticks in key components that may increase
speculation of interest rates as the economy looks to make a full turn
around. First and foremost, exports from the country rose 4.7 percent,
considerably higher than the 3.3 percent expected in the quarter. With
exports higher than the 4.4 percent rise in imports, the trade balance
additionally rose to a surplus of 1.16 billion euros as the previous
month's figures were revised lower to 1.15 billion. Subsequently,
suggestive of optimistm up ahead, equipment and construction investment
rose. Rising 0.6 percent in the previoius period, the equipment figure
soared 3.8 percent as construction climbed 1.1 percent. The relevance
of the figures lies in the fact that they remain a testament of the
potential turnaround that may be witnessed in the region given the
current interest rate level. With a rate increase suggested in
statements issued by central bank President Trichet, the region may face
financial difficulty lending subject to ill effects in the longer term.
Nonetheless, speculation will further mount on expansive numbers as
these.

Technically Speaking
Finding support at 1.1700, the single currency has soared above to
break through 1.1800, a figure not seen in more than two weeks.
Approaching the 38.2 percent fib level from the monthly move, a test
seems imminent as before. However, given the thin volume that has
dominated the markets as we head into the holiday, a penetration above
would not seem a foregone conclusion. Downside floors would not be seen
until the aforementioned support or the 1.1642 low.

USDCAD

More Central Bank Implications
Still bent on central bank rates, traders placed strength behind the
loonie on evidence that inflationary pressures remains on the up and up,
albeit mildly, in the world's eighth largest economy. On an
annualized basis the figure rose 2.6 percent against expectations of 3
percent. Falling short of the consensus expectations, the figure still
remains considerably above the central bank's benchmark target. As a
result, speculation remains strong that interest rates will continue
their upward path when Bank of Canada policy officials meet one more
time before the new year. Additionally spurring the currency's
strength, commodity prices rose once again on the session. Gold
especially rose to breach 18 year highs and inch ever closer to the $500
resistance level. Crude oil prices mimicked the bullion push as traders
bid the contract higher on further speculation of a Northeastern winter
snap. Weather forecasts are strong for a cold and blustery Thankgiving
with a sprinkling of snow.

Technically Speaking
Crashing through the Fibonacci levels, bleeding in the USDCAD currency
pair looks to be temporariliy plugged by the 78.6 percent fib level at
1.1712. Plenty of upside still remains as the price action now hovers
the bottomside trendline and may be suggestive of a turn around in the
currency. A penetration of the confluence would definitely signal
further downside, potentially testing the low below 1.1600. Upside
swings would see a retest of the broken fib levels.

USDCHF

FOMC Flop
The dollar took an afternoon beating as Federal Reserve policy
officials released a slightly more dovish tone in the meeting minutes of
the November 1st decision. Raising rates a 12th time to 4 percent,
policy officials turned the focus from inflation to upside risks of
continual hikes. Additionally, policy makers noted that further rate
decisions may be “increasingly sensitive to incoming economic data.”
Traders bent on rising interest rates in the world's largest economy
had second thoughts and pared back positions shortly following the
statements. Leading to an enormous slide, coupled with thin volume on
the day, further data may be needed to confirm such suggestions before a
new trend emerges.

Technically Speaking
Hitting considerable resistance at 1.3250, price action retraced back
to the 23.6 percent fib level at 1.3149. Crashing through the support
floor, further downside looks imminent, given a failure to hold at
1.3064 with capping not seen till the 61.8 percent fib level. Upside
action looks to be capped by the 1.3283 resistance.

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