Gone are the days when major currency pairs used to have a good correlation among them and would move in a similar direction with each other. These days, trading is more of a minutely observed action that is taken after analyzing different aspects of the economy of different regions, keeping aside the U.S economy.
British pound lost more than 100 points on Friday as the services sector failed to please the investors, after which it closed well below the critical support level of 1.6135. However, today the pair bounced back from its 1.6027 support area and gained nearly 65 points and has completed its 38.2% of bullish correction on the Fibonacci retracement scale.
Currently it is trading at 1.6091 where it would remain in a bearish zone as long as it trades below the 1.6150 critical resistance level. Furthermore, a move above 1.6120 could lift it up to test 1.6135 and then 1.6150 where sellers would try entering the market again.
On the lower side, a move below 1.6090 could take it down to its mild support at 1.6061 and then re-test its Friday’s low of 1.6031.
Euro Back Up in Bullish Channel
The euro gained against the U.S dollar today even though the economic indicators released today were not that significant; however, the pair has completed its 50% bullish correction on Fibonacci retracement scale for its bearish move that it made on Friday.
It is currently trading at 1.3571 at the start of the U.S. session on Monday where a move above the mild resistance area of 1.3601 could open the doors for it to test 1.3617 and then move ahead towards 1.3627.
Whereas, on the downwards side a move below 1.3584 can take it back to 1.3570 and 1.3555, below which selling could become intense.
Aussie remains Firm
Aussie remained firm against the greenback on Monday where it remained well above the 0.9375 critical support level, where it just dropped by 30 points as it was its bearish correction of the bullish move it made on Friday. The pair is still a good choice to go long for the traders as long as it hovers above the 0.9375 level, but below which its long-term bearish trend would start again. However, all eyes are on NFP data that is to be released this week, which could shift the trend of major pairs instantly.
To contact the reporter of this story: Jonathan Millet at email@example.com