The volume of trading remained very low on Tuesday as the holidays were approaching due to Christmas where not much movement was seen in the major pairs. However, whatever movement they made, it was very crucial if seen from a professional and proactive trader’s eyes.
The euro dropped by 30 points against the U.S. dollar where the pair moved below its yesterday’s pivot point and closed below that same level, which indicates that there was no interest shown by the bulls where dominance is still being made by the bears. As a result, the inclination is certainly there for the euro to get down and test 1.3657 and 1.3643, breaking of which could show 1.3620.
The British pound was one of the majors that gave notable movement on Tuesday where it gained a very important 55 points against the greenback where it breached its critical resistance level of 1.6355 and sustained above that level, where it gave a closing at 1.6365. The investors seem to be having a bullish bias on the pair by the end of this year, where they are looking ahead to the key fundamentals including the services, construction, and manufacturing PMI data that is set to be released in the first week of January.
Provided that the economic indicators come out to be better than expected, then the pair would surely boost up in its value and may try testing its previously made tops at the 1.6800 region. Not only this, the good outcome would certainly compel the policy makers to review the decision over the interest rates, where they may go ahead in increasing the interest rate which could give medium-term bullish bias to the pair.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org