The Australian dollar took an early dip today in the Asian session on Monday where it has lost nearly 30 points as a bearish correction of its bullish move held last week. The Aud/Usd is currently trading at 0.9225 where remaining below its today’s pivot point level of 0.9251 could keep the doors open for further correction where the pair may go down till 0.9190 for its 38.2% Fibonacci scale retracement.
The new home sales data was not that amazing, neither was its Private sector credit due to which traders could take this as a good opportunity to fulfill its correction and then start buying on dips. The overall outlook for the pair is strongly bullish as long as the pair survives above the major support level of 0.9110.
The Euro is stuck at the price where it closed i.e. 1.3746 where it has a few resistance levels clustered at 1.3775, 1.3790 and 1.3805 above which buyers could get a strong hold over the pair. However, we need to wait and see the upcoming economic indicators’ results including German retail sales and the Europe’s CPI flash estimate that would indicate as to what extent the prices increased in the past month in the continent, hence hinting towards the demand and consumer purchasing power.
The British Pound is playing in a very short range early this morning where it is
sandwiched between its resistance and support levels of 1.6650 and 1.6620 respectively. The potential for further gains in the pair is definitely there but GBP/USD might probably go for early correction where it can go down till 1.6616 and 1.6600.
The fundamentals including Net lending to individuals is due today where a recorded figure of more than 2.3B could lift the pair up sharply.
Janet Yellen Speaks
The Fed chairman Janet Yellen is set to deliver a speech today in the US session where talking about further tapering measures might allow the major pairs to drop as the USD would become strong. High volatility is expected during the speech so traders are recommended to trade only if they have set stop losses.
To contact the reporter of this story: Jonathan Millet at email@example.com