Majority of the traders were regretting their long positions on the Eur/Usd after the ECB decided to keep the interest rate fixed at 0.25%, because they expected it gain but the pair seemed to be in control of the bears. However, the Euro dropped sharply by nearly 80 points after the ECB President Mario Draghi delivered his speech, whereas the analysts are saying that the bearish move was manipulative and was bound to hit stop losses of buyers.
Technically speaking, Forexminute always reiterates the fact that the market moves on the basis of technical levels 70% of the time, and this is what happened yesterday and today in the Asian session. The Euro was playing under the pivot and resistance level so it continued to drop down and is currently trading at the 1.3702 psychological level just before the start of the London session on Friday.
Markets would remain sluggish till the start of the US session because huge data of NFP and unemployment rate of the US are due to be released, where favorable data for the US could result in a further fall for the Euro.
Services PMI and Falling Pound
After unsatisfactory manufacturing and construction PMI outcomes, the services PMI of the UK economy also couldn’t meet the expected figure, hence resulting in the British Pound to lose against the greenback by around 70 points.
The GBP/USD is currently standing still on its major support level of 1.6576 where buyers can take chances to enter long with tight stop losses, but again nothing is for certain before the NFP data today. Provided that the pair makes a move below this support area, then bears would gain strong momentum and the pair can result in a free fall if the NFP data favors the US dollar.
Aussie is in range and is not recommended to be traded, until the release of the NFP data; in fact, traders should be focusing on buying the pair rather than selling it. So if the job numbers of the US come out to be poor, then the Aussie would shoot up sharply as it is already in the bullish channel.
To conatct the reporter of this story: Jonathan Millet at email@example.com