Euro Dodges, while Pound Ranges

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Euro Dodges, while Pound Ranges
Euro Dodges, while Pound Ranges

Euro Dodges, while Pound Ranges

The euro sustains itself on Tuesday despite the dissatisfactory outcome of the German ZEW Economic sentiment that came out to be worse than expected; however, the Eur/Usd gained 50 points on Tuesday where it managed to give a closing near the 1.3755 mark that is just below its strong resistance level of 1.3766.

As mentioned before, the pair is already in a bullish zone where it would still have potential to rise further where yesterday’s resistance levels would become its today’s supports. The cluster of support is already down there for the pair where buyers would start entering again at the 1.3717 level if the pair gives a small bearish correction for instance.

Moreover, the pair got support from bad outcomes of US Empire state manufacturing index and TIC Long term purchases that allowed the US dollar to weaken.

GBP/USD

The British Pound remained indecisive over the move on Tuesday as the CPI data showed growth but it was less than the previously recorded figure and expected figure of 2.0%. The reason why GBP/USD remained in a 40 pips range is that it was already trading in a bullish area and had bullish momentum from the side of investors, but the inflation numbers were not that bad enough to bring the pair down, hence leading to a choppy market yesterday.

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The pair is currently trading at 1.6694 where it is in the consolidation zone and the traders are advised to long the pair if it moves above the resistance level of 1.6745 and set buy pending orders at 1.6617 support level. Sellers should stay away from the market as of now, expect for the scalpers who can catch some pips between its current price level till 1.6617 area. Short term sellers may enter the market if the pair moves down and sustains below 1.6617 support level.

Yen Weakens

The monetary policy makers of the Japanese economy yet again attempted to weaken their currency as the Japanese yen lost heavily against the major currencies on Tuesday where the Euro gained nearly 110 points within a few minutes against the Japanese yen. Sellers for the Yen are active yet again now, and Eur/Jpy would remain good to buy if it remains above 139.79.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com