Aussie Followed Bearish Technicals

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Aussie Followed Bearish Technicals
Aussie Followed Bearish Technicals

Aussie Followed Bearish Technicals

The Australian dollar followed its technical levels that are bearish, since it closed below the critical level of 0.9592 yesterday, after which it lost nearly 110 points on Tuesday against the U.S. dollar. There were no fundamentals due for the Aussie; however investors are eying on New Home Sales data that is set to be released in the Asian session on Wednesday.

Currently the pair is trading at 0.9476 where a move below 0.9470 could drag it down sharply where its next strong support would be near the 0.9409 area. However, if it regains and moves above 0.9518 then bulls may take it up to 0.9539 and 0.9560. But the Aud/Usd would remain under the control of bears as long as it is below the 0.9591 critical resistance level.

Lending down, so is the Pound

The Gbp/Usd closed below the 1.6184 level on Monday after which bears took control of the pair due to which the British Pound lost nearly 100 points against the greenback on Tuesday. Another major factor behind this bearish momentum was the disappointing data of Net Lending to Individuals that dropped down to 1.4 Billion against the expected figure of 2.5 Billion.

The pair is hovering just above its support area at 1.6048 where some bullish correction is due where it may test the 1.6070 and 1.6101 resistance levels. Provided it moves above this area then it may target the 1.6127 and 1.6154 critical resistance levels. Sellers should feel safe for their sell orders as long as the pair trades below 1.6154.

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Euro in a Zig Zag

No clear direction is there for the traders yet, as the pair is still moving in that short-range between 1.3820 and 1.3726. The euro gained nearly 50 points on Tuesday as the core retail sales and PPI data of the U.S. were not up to the mark, but later on the U.S. dollar gained as the S&P Composite HPI data came out much better than expected.

Support at 1.3733 is quite strong, breaking of which may result in the pair falling and test 1.3706 and 1.3686, but the euro is strongly bullish as it is way ahead of its critical support region that lies at the 1.3650 area. Therefore, the sellers must be cautious before entering sell orders having huge lots, since bulls may take the pair up yet again if the pair hits 1.3760.

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