The market is expected to have a very low volume today so it may move in a short range, since today is the bank holiday in the U.S., Canada, and France. However, today in the Asian session, the major pairs including the GBP/USD and the EUR/USD gained a few points but are now set to fall yet again.
The euro is playing at 1.3402 level in the European session where it has strong resistance level at 1.3410 and 1.3419 which actually dissects it from the bullish zone. The sellers may start entering the market now with very tight stop losses, where the euro may target to test 1.3368 and 1.3335 support level within a day or two.
Moreover, the Italian industrial production didn’t satisfy the investors that is why low bullish sentiment is there in the market, where investors are considering carrying on with the bearish momentum that was caused last week as a result of interest rate cut and excellent NFP data.
Short the Pound
On the other hand, similar is the case with the British Pound that is trading just below its today’s pivot point level 1.6027 where this level also separates the pair from bearish to bullish zone. A very good chance for the sellers is there to short the pair with tight stop losses, where they can even use big lots as well. The pair would surely test the 1.5987 support area, breaking of which could take it down to Friday’s low of 1.5956, and then 1.5915.
Yellen’s Speech is Next Big thing
Gold broke its 1280 support level that was its Friday’s low, and tested 1278.7 and is currently trading at 1284.5 level where it is expected to move within this short range and may not breach 1300 psychological resistance level. Much depends on the speech of nominated Chairperson of Federal Reserve Ms. Yellen that is due on Thursday, where investors would be focusing on what notion or hint is given by her regarding the policy that would be carried on by her, and as to when the stimulus plan would be minimized.
To contact the reporter of this story: Jonathan Millet at email@example.com