The bulls are not going anywhere apparently for the British pound as the construction PMI output showed even better progress against that of October, which helped the pound to gain nearly 40 points against the greenback today. We need to keep in mind that the manufacturing sector also grew for the U.K. economy in November and now all eyes are on the services sector PMI data that would be released tomorrow in the European session.
The pair is currently trading at 1.6406 where the short-term and medium term outlook is bullish where it may test the resistance level at 1.6426 breaking of which could show yesterday’s high of 1.6440. However, a move below today’s pivot point can take it down to test its support levels at 1.6356 and 1.6328 where buyers may start entering the market again.
Ups n Downs for Euro
The euro dropped by 70 points against the U.S. dollar yesterday as the Spanish Manufacturing PMI data disappointed the investors; however, the pair came back up again where it gained 42 points as the Spanish Unemployment change data shows a good recovery as compared to the data that was released for the month of October where 87,000 jobs were lost.
The pair is trading at 1.3567 in the European session here on Tuesday, where a move above its strong resistance level at 1.3587 could lift it up to 1.3615 and yesterday’s high of 1.3622. The pair may not break this level today, but it can if the retail sales indicator of the Eurozone shows a massive improvement tomorrow and the ADP non-farm employment change data disappoints the USD investors.
Aussie – Almost Done
The Australian dollar dropped today earlier in the Asian session but the loss was recovered immediately after the retail sales data for the Australian economy was released, which showed that the retail sales increased by 0.5% for the month of November.
However, the pair is still being enjoyed by the bears as the outlook is bearish and is good to sell as long as the pair trades below 0.9155 resistance level.
To contact the reporter of this story: Jonathan Millet at email@example.com