The major currency pairs are enjoying new highs every day against the U.S. dollar, where a bearish correction is still due for the pairs, but since there are not many economic indicators due today so the chances are that the market would remain slow and may follow its technical move yet again.
The euro is currently trading at 1.3769 at the start of the European session here on Wednesday where a move above its mild resistance of 1.3785 could take it to 1.3800 that the pair has already tested yesterday. However, a move below the support level of 1.3744 could drag the pair down to 1.3728 and 1.3706 that would complete its short-term correction as well. Overall, the outlook for the euro is still bullish where buyers may feel safe to stay in long positions as long as the pair is trading above the critical support level of 1.3657.
The British pound remained choppy on Tuesday where it played in a short range of 35 points all day long, and is still trading in that range-bound area at 1.6433 where a move above 1.6469 would allow the bulls to enter again and take it further up to 1.6482 and 1.6491.
On the other hand, bears seem to be quite keen to enter if the pair moves below its double bottom of 1.6422, where the pair can come down to test 1.6403, 1.6394 and its strong support level of 1.6381, sustaining below which the pair may go in the hands of bears.
The Australian dollar is sustaining above that critical level that we mentioned earlier it broke above which and would be safe to be bought as long as it trades and sustains above 0.9085. The Aussie gained around 70 points yesterday where it made a new high of 0.9165 after which it is currently trading at 0.9116. Buyers should feel confident while entering only if the pair reverses again and moves above its today’s pivot point of 0.9132, or else it may test 0.9092 support area by the end of the U.S. session on Wednesday.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org