A wise trader must be looking at the levels where the major currency pairs closed, because these are levels that define as to what outlook these pairs would carry for the upcoming weeks. Let’s check out which pair closed at what levels and why.
The euro remained in a very short range on Tuesday where it didn’t give much movement and played in a 30 pips range; although it was already in a bullish channel but the closing that it gave further proved that bulls had a better control over the pair as compared to the bears.
The euro closed not only above its important support level of 1.3757 but as well as its daily pivot point of 1.3775, while on other technical indicators it closed above the 200-EMA line on the 15 min chart as well.
As hinted earlier in our report that the bulls are strong with the pound, as the momentum both in terms of fundamental and technical is bullish, hence the pair gained significantly against the U.S. dollar on Tuesday where it topped its previous high as it tested and closed at the level of 1.6572.
The pound might be targeting its new highs that it did not make in 2013, where it can go as high as 1.6800, 1.6900 and 1.7000 mark, provided its next due fundamentals delight the GBP investors, which would in turn also build up the chances of increasing interest rate by the BoE.
Now this is something that must be discussed now. The metal was highly bearish for the past several days and weeks, where it was trading at 1198 yesterday where suddenly downward spike got the metal down to 1181, but suddenly just before the closing of the last trading session of 2013, bulls entered and took the metal up to 1214 where it closed at 1206. This means that there is still a major stake of the institutions that have invested in gold and since they do not want it to go further bearish; hence they even invested more to bring its price up.
To contact the reporter of this story: Jonathan Millet at email@example.com