Euro gained more than 240 points against the U.S. dollar on Wednesday after the French industrial production data pleased investors, followed by the comments by the Fed members and its chairman that it seems to be quite premature to talk about cutting on the easing measures. The chairman said that the monetary policy would be highly accommodative where bond buying plan would continue as the unemployment level remains relatively higher than desired. If it comes down to 6.5% level then bond buying plan may see some sort of reduction, but not for now.
The pair sky-rocketed after his speech and rallied more than 100 points that took the pair well above its critical level of 1.2910, as the bulls have taken control over it. Euro is currently moving around the1.3024 area where a move below 1.2990 could take it down till 1.29150 that is its daily pivot point, but traders are recommended to keep buying the pair as long as the pair sustains above 1.2910.
On the upward side, a move above 1.3030 would open the doors to test 1.3066, breaking of which could show 1.3103 and 1.3141 later on.
Double Bottom Strategy Worked for the Pound
As stated in the previous report that the pair could bounce back from its double bottom area at 1.4800 that it tested in February this year, and so it did on Wednesday where it gained more than 200 points as the bulls started longing the pair from the Asian session. Later on, FOMC meeting minutes gave it a boost that took the pair till 1.5030 by the end of the U.S session. Currently it is moving at the 1.5070 area in the Asian session, where a move above its resistance level of 1.5075 could take it to 1.5107 and 1.5137.
The traders should keep on buying the pair as long as it sustains above the key level of 1.4945.
Aussie plays in Range before Unemployment Numbers
The Australian dollar remained in range of 100 points against the U.S dollar where it bounced back up after the FOMC Meeting minutes and is currently moving at 0.9242. However, the pair is still bullish as it survived to sustain above its key level of 0.9135 and traders would keep on buying it if it manages to do the same today and tomorrow. Good unemployment numbers could take the pair further up till 0.9273, breaking of which could show 0.9294 and 0.9316. However, disappointing data could allow bears to take over control where a move below 0.9216 could show 0.9194 and 0.9173.