After making a fresh new low at 1.2802 on Friday, the pair gained on Monday and tested its mild resistance at 1.2880 after moving up its yesterday’s pivot point. However, it couldn’t break that resistance and bounced back down by around 30 points and is currently moving at 1.2860. Even though the German trade balance and Industrial production numbers disappointed the investors, the yesterday’s bullish move in the pair was based on the eurogroup meetings where the bailout plan for Greece was under discussion. The probability of Greece getting another bailout from the creditors is high and that is the reason why traders are set to long this pair.
If the pair manages to break its yesterday’s high of 1.2880 then it would target 1.2904, 1.2919, and then 1.2939, where sellers may attempt to enter the market again. However, if it moves below 1.2835 then it may go down further till 1.2802, breaking of which could show 1.2781 and 1.2766.
Pound Retraces on a fresh start on Monday
The pair fell drastically on Friday after the U.S employment numbers where it made a low of 1.4855 and then bounced back up to give 50% retracement on its Friday’s fall. Pound moved up on Monday by around 100 points where it tested its resistance level at 1.4962. The pair is currently moving at 1.4942 where a move below its daily pivot point at 1.4920 could take it down to 1.4899 and 1.4878. As on the upward side, if it moves above 1.4962 then it would target 1.4982 and then 1.5003.
The key economic indicators to watch for today are Manufacturing production, trade balance, and industrial production, where a satisfactory outcome on these could really help the pair move up till at least 1.5003.
Aussie plays in Range while being Bearish
The pair has been playing in a wider range for the past few trading days where it gained around almost 100 points on Monday but bounced back from the critical level at 0.9140 and is currently moving at 0.9129. Today there is no fundamental data due for the Australian dollar; however, the consumer sentiment and employment numbers are due on Wednesday and Thursday, respectively. The pair would remain bearish if does not make a sustainable move above 0.9140; therefore, if it moves below its today’s pivot point at 0.9110 then it would target its next support levels at 0.9035 and 0.9077.