Euro Soars on German Industrial Production

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Euro Soars on German Industrial Production
Euro Soars on German Industrial Production

Euro Soars on German Industrial Production

The euro gained around 70 points on Wednesday after reversing back from its pivotal point at 1.3268 where bulls entered and took the pair till 1.3345, as the German industrial production showed a positive sign by growing around 2.4% in the month of June, while it shrank 0.8% in May this year.

At the early hours of Asian trading session the pair is moving at 1.3337 where a break above 1.3345 would allow it to attempt its next resistance levels at 1.3363 and 1.3383.

If the German trade balance and U.S. unemployment claims data do not favor the euro, then its move below 1.3306 can take it further down to 1.3280 and 1.3265. Sellers would be confident to enter the market below the support level of 1.3250.

Pound gone Nuts

Gbp/Usd experienced a highly volatile day yesterday where its total move for the day was more than 500 points. During the London session it plunged by around 140 points as the BoE Governor’s speech was a bit dovish, but after that the market surged in an instant where 350 points gain was recorded by the end of the U.S session.

The pair moved from the 1.5200 support area till 1.5550 after which it is currently trading at 1.5489 in the early hours of the Asian session. The British Pound must break its support level of 1.5452 in order to move down to test its next support at 1.5424 and 1.5395. It remains safe to buy as long as it does not move below 1.5350.

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No economic indicator is due for the U.K. today, where it may remain sluggish before the start of the U.S. session where unemployment claims for the U.S. are due.

Bullish Aussie Fearing Unemployment Numbers

Based on good data of Home Loans for the month of June, Aud/Usd surged by nearly 90 points yesterday where it is currently trading at 0.8994. Bulls are afraid of the unemployment numbers where a greater than 5.8% unemployment figure could be disappointing for the investors and so selling may be seen.

It must break its yesterday’s pivot point of 0.8963 to move further down till 0.8942 and 0.8920, breaking of which would result in bullish consolidation and selling may become easy.

On the upward side, if it manages to sustain above the resistance level of 0.9020 then it would attempt to hit its next resistance levels at 0.9040 and 0.9065.

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