The market witnessed bulls in action at the start of a new week, where major currency pairs gained slightly against the U.S. dollar in the Asian session where the euro is currently trading at 1.3562 which is technically a perfect level to go short on the pair as there lays a strong resistance level near 1.3575 area.
Provided it makes a sustainable move above 1.3575 then it would open the doors for the pair to go ahead with further gains and target the 1.3640 area in a day or two. Whereas on the flipside, if it breaks down below 1.3558 then sellers would get more confidence to go short on the pair that could take the pair down to 1.3524 and 1.3503.
Market is expected to remain sluggish for today as there is a bank holiday in Canada and the U.S, so movement would most probably follow the current technical levels as there is no critical fundamental is due.
Correction in Action
The British pound is in a state of bullish correction for its massive bearish rally held last week, and is currently trading at 1.5983 just before the start of the London session after gaining more than 20 points in the Asian session on Monday.
Traders must be cautious of going long on the pair with big lots, because this move might reverse as the resistance levels are clustered above the 1.6003 psychological level that may hinder bulls taking the pair up.
The doors are open for the sellers to enter the market as long as the pound trades below the 1.6069 resistance level which separates the bullish and bearish zone for now.
Aussie Stays Firm
The Australian dollar stays firm against the U.S. dollar on Monday where the negative outcome of Australian home loans was overshadowed by good inflation numbers from the Chinese economy, as the Australian economy relies much on how the Chinese economy is performing.
The AUD/USD is trading at 0.9470 and is at a multi-months high level where it may face resistance at 0.9480 that is the Double Top for it. Provided it breaks above this level then it could go up to test 0.9495 0.9513 and 0.9535.
However, sellers may take a CHANCE to sell the pair with tight stop loss as long as the pair is trading below 0.9480 but it would remain bullish if it hovers above 0.9375.