The major pairs witnessed a sluggish start on Monday where they remained in a very short range of 40 points, as the euro couldn’t get under control of the bears yet. The euro gained earlier this morning where it went on to re-test the resistance level at 1.3801 after which it dropped down and is currently trading at 1.3753 in the U.S. session on Monday. The buyers are still in control over the pair as the pair is still moving above its today’s pivot point level which lies at 1.3740, breaking below which could take the pair down to test its support levels at 1.3729 and 1.3710. The overall outlook would remain bullish for the euro as long as it trades above the critical support level which is present at 1.3670.
The economic indicators showed a mixed result where the manufacturing sector of the French economy grew by less than expected, whereas manufacturing sector of the German economy showed a better than forecasted outcome which caused the pair to move in a short zigzag range.
As we mentioned in our previous report that the pound would remain bearish for short term if it does not move above the critical resistance area of 1.6365, and so did the sellers are still intact with the pair. The GBP/USD gained earlier this morning where it went on to the test 1.6352 resistance level where sellers started entering the market again after which the pair is currently trading at 1.6305 in the U.S. session. Depending upon its bearish move, a break below 1.6286 could allow the bears to test the next support levels at 1.6260 and 1.6243.
Commodity Currencies Up
The commodity currencies including the Australian dollar and the Canadian dollar gained against the U.S. dollar on Monday as the speculators are betting on buying gold and other commodities before the FED members meet tomorrow. Some analysts are expecting that the gain in today’s gold market was a result of the perception that the FED may not taper this month.
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