Volatility Continues for Majors

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Volatility Continues for Majors
Volatility Continues for Majors

Volatility Continues for Majors

Eur/Usd

The bank holiday in Europe led the Eur/Usd pair to follow its technical move, where failing to move above of the 1.3300 psychological level led the pair to lose around 95 points, where the bearish move was fastened in the start of the U.S. session as the unemployment claims data supported the USD to gain.

But later on the industrial production and Manufacturing index disappointed the USD investors, which led to a nearly 140 points bounce by the bulls.

The pair is hovering at 1.3350 in the Asian session on Friday where a break below 1.3327 can take the pair further down to 1.3303 and 1.3288 where buyers would attempt to enter the market yet again. A move above 1.3360 has its next targets at 1.3381 and 13402.

Gbp/Usd

Smooth bullish rally goes on for the British pound as the retail sales showed a substantial improvement by 1.1% increase in July as compared to 0.2% growth in June. The pair gained nearly 110 points on Thursday where it is currently moving at 1.5640 as it is eyeing to test its next resistance levels of 1.5688 and 1.5706 if it manages to break above 1.5653 mild resistance level.

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It would remain bullish and safe for traders to buy as long as it survives above the key support level of 1.5535.

The important fundamentals due today include the U.S. Building permits, Consumer sentiment data, and housing starts, where one-sided data can create a delight for traders – either buyers or sellers.

Aud/Usd

Aussie remains firm and is back in the area where it closed on Wednesday, where a zig-zag movement kept the pair in the bullish zone and would remain there as long as it does not move and sustain below the 0.9078 critical support level.

Usd/Jpy

The greenback had a tough day Thursday where it bounced back from the resistance level of 98.60 after which it fell drastically against the Japanese yen with a 140 points drop and is currently trading just above the important support level of 97.20. The pair would go bearish and selling would be seen if it manages to move and sustain below this key level; above which it is safe to buy.

Much depends on the key fundamentals due today in the U.S. session where things may get clear for the pair if the data comes out to be one-sided.  So traders can trade with tight stop losses near this key level whether they are buying or selling.

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