The Australian dollar made a smooth bullish rally today in the Asian and European session where it has gained 90 points so far, and is trading at 0.9046 at the start of the US trading session here on Monday. The pair has entered the bullish zone after breaching its resistance levels at 0.9009 and 0.9023 where sustaining above these two levels would be a good sign for the bulls as more and more buying potential would remain there.
There is no such critical fundamental due for the Aussie tomorrow or even for China, hence the pair is expected to follow its technical levels and might go further up to test the 0.9067 resistance level and then 0.9082 where pending sell orders are set.
On the other hand, the Euro dodged the traders here on Monday where much better than expected German IFO Business climate data along with the inflation numbers, resulted in losing the points for the pair by 50 points. The ECB President Mario Draghi stated that the ECB is ready to act if inflationary pressure creates some sort of hurdles for the economy and the currency as a whole.
The Euro has been enjoying its move in the bullish zone as the buyers are sticking on to their long positions, where potential for buying would remain there as long as the pair does not move below 1.3641. However, if it moves below its clustered support levels till 1.3688, then it may go down freely to test 1.3645 where buy pending orders could give another support to the pair.
Take a Chance
Sell the British Pound just right now, where even heavy lots can be used at this current level of 1.6646 with tight stop losses that could be set at 1.6682 and 1.6708. Moreover, the pair is expected to remain in a short range till Wednesday where its second GDP estimate would create volatility in the market and that would be the time where traders could find a clear direction. So, for now, selling the pair is the best option.
To contact the reporter of this story: Jonathan Millet at email@example.com