The Euro fell yesterday in the European session as the economic indicators released were mixed, where the German flash manufacturing index disappointed the investors along with the flash manufacturing and services PMI data for the Eurozone. However, the pair managed to bounce from its support level at 1.3683 later in the US session where a worse than expected outcome of US Philly Fed manufacturing index showed contraction in the past month, hence giving some leeway to the pair to gain against the greenback.
The Euro closed at around 1.3713 level on Thursday and would remain good to buy if it remains above yesterday’s low of 1.3683 but the bulls would remain in the market as long as the pair survives above the critical support of 1.3630.
UK Industrial Orders Fell
The British Pound entered the short term bearish zone on Thursday as the outcome of the CBI Industrial order expectations fell dramatically last month, hence taking the pair down by 60 points where it managed to close below its critical support of 1.6680.
The opportunity to short the pair would remain there if it trades below the significant resistance level of 1.6701 which is also its psychological support level. Plus, if it moves below the support level of 1.6628 then it would go on to test next support levels of 1.6607 1.6586 and 1.6559.
The investors are eying on some really interesting economic indicators that are to be released today in the European session including the retail sales and the public sector net borrowing.
China leads Aussie to Drop
The Chinese HSBC Flash manufacturing PMI showed that the manufacturing sector in the Chinese economy grew much less than expected; hence it took the Aussie pair down immediately yesterday as the Australian economy depends on the Chinese economic well being to a great extent. The pair is good to short as long as it remains below the resistance level of 0.9013; moreover, heavy selling could be seen if it moves below the 0.8969 support level.
To contact the reporter of this story: Jonathan Millet at email@example.com