The much-awaited recovery signs are up now as the Spanish manufacturing sector expanded last month way better than expected, as more and more entrepreneurial initiatives are being taken over there. Not only youngsters but as well as experienced people who got laid off or had to quit their jobs, are starting off with new startups where most of them are in the services sector.
Hence, as a result the consumer spending has shown a positive change in the services sector of Spain, which has in turn allowed the bulls to enter the market and take the euro up by 50 points today. The pair is currently trading at 1.3619 in the European session where a move above the resistance level of 1.3636 could lift it up to 1.3664 and 1.3693. However, the outlook remains bearish if it trades below the critical resistance level of 1.3721.
Services Sector Sustainable
The services PMI data of the UK economy wasn’t that good because it turned out to be lower than expected; however, it has lifted the GBP/USD pair up by 40 points as the investors are considering this outcome as a sustainable one for the economy.
The pair is trading at 1.6377 where a move above the mild resistance area of 1.6398 could take it up to its today’s pivot point level that is 1.6423 above which the resistance levels are clustered at 1.6437 and 1.6452.
A move with a higher volume is expected today in the U.S. session after the ISM Non-manufacturing PMI data where a disappointing result could further lift the pair up to the above mentioned resistance levels. But wait, that would not be a bullish move for the GBP, in fact it would be a correction as sellers would try entering the market again at those resistance levels with tight stop losses.
The Aussie remained in range today where it may be giving a good solid move in the upcoming days as its trade balance, retail sales, and building approvals data are due from tomorrow. A very easy tactic to play around with the pair is to identify the bullish and bearish channels, where bulls must feel safe on their positions as long as the pair is above the 0.8922 support level.
To contact the reporter of this story: Jonathan Millet at email@example.com