Sluggish Euro Awaits FOMC

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Sluggish Euro Awaits FOMC
Sluggish Euro Awaits FOMC

Sluggish Euro Awaits FOMC

As mentioned in previous reports that the euro would remain in range against the U.S. dollar and so it did for the past two days, and is still trading at 1.3261 at the start of the Asian session on Wednesday.

Eur/Usd couldn’t get a boost as the German Consumer Climate came out to be almost the same as expected, where it didn’t improve much compared to the previous reading.  Moreover, the Spanish Flash GDP for the second quarter showed a contraction by 0.1% that was certainly not a thing to get good vibes about the economic situation in the country.

A move above 1.3272 could lead it to test its triple top at 1.3295, breaking of which could show 1.3217. And a move below 1.3238 may take the pair further down till 1.3217 and 1.3206.

Pound went with Bearish Technicals

Although no fundamental was due for the GBP on Tuesday, but since it closed below 1.5357 on Monday and entered the bearish zone so it continued the downward move where it fell further 100 points yesterday where bears took the pair down to its strong support level of 1.5221.

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Currently, it’s moving at 1.5240 where a move above 1.5275 would create a bearish consolidation and it may go on to test 1.5302 and 1.5330 where sellers may enter again. If it breaks yesterday’s low then it could fall drastically and hit its next supports at 1.5195 and 1.5170.

Curtains for Aussie Continue

As stated in previous analysis that the Aussie failed to break its double top resistance level at the 0.9300 region and completed its bullish correction, hence it started falling down where bears closed the pair in a bearish channel on Monday. The pair followed its technical, and as well as fundamentals on Tuesday where it fell more than 130 points after the release of highly disappointing Building Approvals data that contracted by 6.9% for the month of June against the expected growth of 2.2%.

Currently the pair is trading at 0.9064 where it would remain bearish as long as it does not move and sustain above the level of 0.9188 which does not seem to be happening that easily unless FED Chairman Ben Bernanke hints towards continuing the massive bond buying plan and postpones tapering the QE measures for an undefined period of time. He is due to speak on Wednesday where a good move is expected not only in the major currency pairs but in the commodities market as well.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com