All Eyes on Services sector of European Region

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All Eyes on the Services sector of European Region
All Eyes on the Services sector of European Region

All Eyes on the Services sector of European Region

The euro did well on Friday and gained more than 100 points against the greenback and closed just above its important resistance level of 1.3268 that technically gave it a bullish bias. The lesser than expected number of jobs were added in the U.S economy in July and along with that the stimulus plan from the FED is supposed to continue for now so the U.S. dollar may weaken that would give support to the major currency pairs and as well as gold.

Currently the EUR/USD is trading at 1.3276 at the start of the Asian session on Monday where it may attempt to break 1.3310 and if it does then its next target would be 1.3350, breaking of which would target 1.3460 as its weekly target. If it takes a move below 1.3250 then it may hit its support levels at 1.3230 and Friday’s low of 1.3190. The key economic indicators to watch today are the services of Italy, Spain, and the Eurozone.

Pound Expecting a Correction Pound gained sharply against the U.S. dollar on Friday where it soared more than 200 points in just one day as its construction sector boomed and the job numbers of the U.S. also helped it to move up. Currently, the pair is hovering at the 1.5289 level where a bearish correction is due where it may go down till 1.5241 and 1.5198, where buyers would enter the market again. And if it moves above its Friday’s high of 1.5307 then bulls would target 1.5327 and 1.5340.

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The services PMI data is due today where a good move is expected as the services sector contributes a major proportion to the U.K. economy. If the pair sustains below 1.5198 then it would get bearish yet again and target 1.5176 and 1.5155.

Miracle for Aussie

The Australian dollar has been struggling for the past 2 months against the U.S. dollar where a slowdown in the Chinese and Australian economies has created serious concerns for the investors. The pair needs more than a 120 points gain in order to enter the short-term bullish channel or else it would remain bearish as long as it trades below 0.9045.

However, if it breaks Friday’s low of 0.8880 then it would simply make it easier to make the forecast of Goldman Sachs easier and sooner to happen where it would continue to fall and target 0.8838 and 0.8816. Only a strong fundamental could give a kick back to this pair now.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com