The pair made a fresh new low on Friday at the level of 1.2990 after which it gained against the U.S dollar on Monday where it tested the strong resistance level of 1.3070 where sellers entered again and pushed the pair to close below this critical level.
The Spanish and Italian Manufacturing PMI numbers came out to be better than expected; whereas, the Eurozone’s unemployment level dropped down to 12.1% against the expected figure of 12.3%. Therefore, these fundamentals helped build up the investor confidence in the euro but the pair would remain bearish as long as it is playing below 1.3070.
Currently the pair is hovering at 1.3061 where a move below its pivot point at 1.3050 could lead it to test its next support levels of 1.3030 and 1.3010, breaking of which could show Friday’s low of 1.2990. However, on the upward side, a sustainable move above 1.3070 would open the doors for the pair to test its resistance levels at 1.3090 and the psychological level of 1.3100.
The pair played in a short range on Monday and couldn’t gain much against the greenback even after the numbers showed that the manufacturing sector of the U.K performed pretty well as compared the previous reading.
Currently, the pair is standing at its strong support level at 1.5210 where a move below 1.5193 could show Friday’s low of 1.5165, breaking of which could extend the bearish rally and take the pair further down till 1.5136 and 1.5108. On the upward side, a sustainable move above the resistance level of 1.5249 could take the pair till 1.5277 and 1.5305 where sellers may enter again. The pair would remain bearish as long as it is moving below the critical level of 1.5334.
The key fundamental to watch is the Construction PMI that is due in the European session today.
The pair made a fresh new low at 0.9102 against the U.S dollar on Friday after which it bounced back up from this psychological level and gained more than 100 points on Monday against the greenback. The pair successfully managed to close above the critical level of 0.9235 that pushed it back into the bullish zone.
The Reserve Bank of Australia kept the interest rate same at 2.75% after which the pair is moving at 0.9215 level, where a move below its pivot point at 0.9197 could lead it to go down further till 0.9170 and 0.9144. However, if it manages to sustain above 0.9235 then it would continue its bullish move from yesterday and target 0.9274 and 0.9300.