The precious metal gained substantially in the U.S. session on Tuesday, where despite the impressive figures of the ISM Manufacturing PMI and Construction Spending in the U.S. economy, the bulls entered the gold market where they took it from the 1386 level to the 1415 resistance level that is its previous support level.
The reason behind this bullish move was that the U.S. senate would be voting in favor of the U.S. strikes in Syria against the armed rebels and the Syrian government that used chemical weapons. The disruption in the political scenario and the supply of oil is driving the crude oil and gold prices.
Euro Under Pressure
On the other hand, the euro remained under pressure where it lost nearly 40 points as the U.S. manufacturing sector grew considerably, but the EUR/USD bounced back from its support level of 1.3135 and is currently trading at 1.3173.
Provided that the pair moves above 1.3195 then its next target would be 1.3210 1.3225 and 1.3241, whereas a move below 1.3135 would open the doors for 1.3117 and 1.3095.
Pound Remained Mixed
As mentioned in our previous report that the British pound may play in a bigger range this week as there are many important fundamentals due for the GBP and as well as USD.
Therefore, traders simply followed the fundamentals yesterday where the construction sector of the U.K. economy expanded significantly in August after which the pair immediately gained 50 points but later on all gains were lost when the manufacturing and construction data for the U.S. economy were released. The pair bounced back from its critical support of 1.5525 after which it is currently trading at 1.5565 where a move above 1.5576 could show 1.5600 and 1.5620.
Traders who followed our previous forex report must have benefitted from it as we mentioned that the Aussie is safe to buy as long as it survives above 0.8975, and so the bulls proved it on Tuesday where Aud/Usd gained 60 points and is currently trading at 0.9054 and a move above 0.9065 resistance level could allow the bulls to take the pair further up to 0.9092 and 0.9119.
The investor confidence in the Australian dollar has risen to a certain extent as the Chinese economy is performing better than 2nd quarter, plus the retail sales of the Australian economy grew by 0.1% in August against zero growth in July. Moreover, the interest rate was kept the same at 2.5% by the Reserve Bank of Australia on Tuesday.
To contact the reporter of this story: Jonathan Millet at email@example.com