Majors Remained Indecisive on Monday

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Majors Remained Indecisive on Monday
Majors Remained Indecisive on Monday

EUR/USD

Eur/Usd, after closing below the critical level of 1.3086 on Friday, played in range on Monday where it fell in the Asian and European sessions as the Chinese GDP numbers disappointed the investors. The concerns among the investors rose based on this news as the Chinese economy exports a substantial amount of manufacturing products to the Eurozone at low prices, hence the consumer spending in the Eurozone may experience some slowdown in the near future if exports get halted.

The pair then bounced back from the 1.2991 level and tested the resistance level of 1.3072 after gaining more than 70 points in the U.S session, as the Core Retail Sales of the United States for the month of June disappointed the USD investors.

If the pair manages to move above 1.3072 then it would target 1.3096, sustaining above which could further extend the gains in the pair that may show 1.3119 and 1.3142 in near-term. However, the support levels to watch are 1.3025, 1.3003, and 1.2979, but good movement would be seen in the market once the German ZEW economic sentiment data is released in the European session.

GBP/USD

Pound made a similar movement as the Euro did, and it managed to close below its critical level of 1.5129 which was also its Monday’s pivot point. The pair is currently moving at 1.5095 in the hourly trading hours of the Asian session on Tuesday, where today’s key economic indicators for the GBP including its CPI and PPI levels could result in good volatility in the market as investors are eyeing whether the economy is nearing its inflation target or not.

If the pair manages to move above 1.5129 today then it may go on to test 1.5153 and 1.5178, where a lot depends on inflation data as better than expected numbers could help the pound gain significantly against the greenback.

Gold Stays Firm

The precious metal stayed firm on Monday, where it traded between 1296 and 1273 level. After failing to breach its psychological level of 1300 today in the European session, sellers entered the market and took the metal down to its support level near its 200-EMA on its 30-minute chart. Later on in the U.S session, the metal gained against the U.S dollar as the Retail Sales numbers of the United States were not attractive, as the core retail sales did not grow in the past month against its previous reading of 0.3% growth. Provided the metal crosses the 1300 level, its next targets would be 1312 and 1320; whereas, breaking of its support level of 1272 could take it down till 1264 and 1248.