All Eyes on Job Numbers
First trading Friday of every month; yes this is what investors look at the most that actually determines the overall short-term outlook not only for the stock market index but as well as major pairs and commodities like gold.
The economic indicators for the Eurozone including the German unemployment change and the German retail sales showed good positive outcomes, which were better than expected. However, the Eur/Usd pair didn’t give much one-sided movement today as it remained in a 50 points range since it could not break its resistance level of 1.3657 and the support level of 1.3595.
The outlook for the pair is still bearish where it may probably be playing below the resistance level of 1.3717 until Friday’s U.S. session that separates it from the bullish channel. Trading this pair with buy entries is not recommended as of now, since all depends on job numbers of the U.S.
The Gbp/Usd also played in a short range of 60 points where it failed to break the strong resistance area of 1.6437 where sellers entered yesterday in the European session as we mentioned in our previous report that it would be a good opportunity to enter as sell there.
Therefore, they made around 50 points but the pair is back up and is in the 1.6417 range and would remain good to sell as long as the pair does not move above and sustain above the resistance level of 1.6460 where heavy sell pending orders are placed.
The Australian dollar remained under pressure and favored its technical move where it remained below its pivot point level of 0.8956 and kept following until it bounced back from the support level of 0.8898 that is acting its psychological support area. The trade balance did show good outcome, but investors are looking ahead to retail sales and building approvals data that may give some boost to the pair if they come out to be better than expected. Selling would get heavy below the 0.8890 support level.
To contact the reporter of this story: Jonathan Millet at email@example.com