The trading volume on Thursday remained quite low as the major pairs traded in a range, where their choppiness might have led to some losses for intra-day traders. However, a couple of pairs that can be traded with clear direction should be entered by the traders as clear stop loss levels are there.
The euro couldn’t sustain above its resistance area of 1.3635 and bounced back yesterday beneath it and is currently trading at 1.3609, where chances of sellers entering the market again at this level are high since the pair is in a short-term bearish range and is playing below its today’s pivot point level of 1.3617.
However, much depends on the economic indicators of the USD today where building permits data and consumer sentiment numbers would be released, where better than expected outcomes can surely bring the pair down.
The retail sales data is due in the European session today where the sales are expected to grow by 0.2% for the past month; however, not meeting up with the forecasted figure can drag the pair down to 1.6314 and next support levels of 1.6297 and 1.6283.
The GBP/USD pair is trading in a bearish channel for the past 3 days where sellers would remain in control of the pair if it trades below the resistance level of 1.6423, which is nearly 100 points far from its current level.
The most predictable pair these days is the euro against the Japanese yen, where traders follow the pair based on what move is being taken by the stock indices in Tokyo, which of course usually follows the move that happened on Wall Street in the previous day. Therefore, you can somehow relate this pair’s move with that of Wall Street, where ups and downs are seen in the past week where a heavy plunge was followed by a sharp regain.
Currently, the pair is trading at 142.04 where it is recommended for the traders to long the pair above the level of 142.22 as it can go up to test its resistance levels at 142.39 and 142.63.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org