The pair fell from the start of the Asian session on Thursday, where it fell further after the current account data of the eurozone came out to be worse than expected. The pair however failed to sustain below the critical support level of 1.3070 and bounced back in the U.S session despite the good data on unemployment claims of the U.S.
Currently the pair is trading at 1.3109 in the early hours of the Asian session on Friday where a move above the resistance level of 1.3125 could open its doors to test 1.3154 and then Wednesday’s high of 1.3170. On the other hand, bears would take over control of the pair if it successfully moves and sustains below 1.3070 where it could fall down to 1.3047 and 1.3030. German PPI data is the key indicator to watch on Friday.
Pound remained range-bound on Thursday and played in a wider range of 80 points where it fell in the Asian session, bounced back up in London session and then fell down after sluggish retail sales growth in the U.K. economy.
Currently the pair is back up at the 1.5225 level where a move above 1.5230 could take it to test the 1.5260 resistance level, above which it could hit 1.5280. On the downward side, a move below 1.5180 can take it down to test 1.5140 where buyers may start to enter again, so safe selling would be below 1.5135. Public sector net borrowing is the key data to watch for GBP on Friday.
Aussie Back on Track
As stated in a report last week that the Australian dollar is in a long-term bearish channel where it may move down below the 0.90 level in the near future, the pair got ready for it from Thursday. The Australian dollar fell sharply on Bernanke’s speech on Thursday and carried its downward move on Friday as well where it dropped more than 80 points on Friday and is currently holding itself just above its critical support level of 0.9150.
A move below this level could allow bears to enter the market and take it down to 0.9104, 0.9076, breaking of which could show 0.9043. Whereas on the upward side, it has a net of resistance levels starting from 0.9176 till 0.9354 so gaining against the greenback would not be easy for the pair unless any good fundamental comes up in its favor.