Sluggish Start for Majors

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Sluggish Start for Majors
Sluggish Start for Majors

Sluggish Start for Majors

The major currency pairs gave a sluggish start today in the Asian session for a new week, where the Euro is trading at 1.3698 just near the level where it closed on Friday. The job numbers of the United States were actually good as they improved relatively as compared to previously recorded numbers; however, we didn’t get to see the majors losing much against the greenback on Friday.

Since, there are no such important fundamentals due so the market is expected to follow the technical levels and for that the Euro is trading below its resistance and pivot point levels where chances are that it might further slide today. Provided that the Euro breaks its Friday’s low of 1.3665 then its next targets would be 1.3645, 1.3633 and 1.3600.

Choppy Pound

The British Pound is very choppy at the moment and is expected to remain the same if it trades in between the levels of 1.6600 and 1.6560. Traders are advised to long the pair if it moves and sustains above the resistance level of 1.6600 after which it would go on to test 1.6615 and 1.6630, breaking of which could lead to 1.6660.

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On the other side, if it makes a move below its critical resistance level of 1.6560 then bears would gain control of the pair and would take it down further to 1.6540, 1.6525 and 1.6510. Those waiting to enter the market after some fundamental should wait for tomorrow as the manufacturing production data for the UK economy would be released in the European trading session.

Aussie’s On Top

The Australian dollar is at the top where it is trading at 0.9284 in the Asian session here on Monday where a move above its Friday’s high of 0.9305 could result in further gains for the pair of around 40 to 50 points.

The traders who simply follow fundamentals to trade this pair must be worried about this bullish move, but we repeat here that the Aussie relies more upon the technical moves as well, especially the price action theory. More advice for long term traders is that the pair would remain bullish as long as it sustains above the major support level of 0.9150.

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