The Australian dollar that was playing in a wider range last week, opened in an upward gap of around 40 points as the traders in the Asian session today got a chance to react over the Chinese inflationary numbers that were released on Friday last week. The CPI data showed a very positive outcome for the Chinese economy where the consumer prices for the goods and services increased moderately, as the demand for them increased hence showing a positive trend in the consumer purchasing power.
The Aussie is trading at 0.9051 in the Asian session here on Monday where its resistance levels are clustered above it at 0.9077 0.9090 and 0.9115; however, before testing these levels the pair might as well fill its gap where it is expected to retrace down to 0.9015 which is its pivot point level for today. The bulls would be enjoying the market and would stand still as long as the pair is trading above the critical support level of 0.8965.
Pound Marches On
The British pound is continuing its bullish streak as mentioned earlier in our reports in January, since the BoE has significant confidence in the currency and wants to see it rising further. Moreover, if the interest rate for the U.K. economy is to increase, the impact would be magnifying where it can enter the 1.7xxx area easily.
Currently, the pair is hovering at 1.6787 level after bouncing back to the 1.6820 resistance level as it gained earlier in the Asian session today from its mild support area of 1.6750. The potential for the pair to rise up further is definitely there where it can go till 1.6880 today, but a move below its support level of 1.6770 could take it down to its pivot point at 1.6730. However, if you are a long term trader and have positions in buy open, you need not worry as long as the pair is sustaining above the critical support level of 1.6610 which is around 170 points away from its current price level.
Follow the Technicals
There is no such economic indicator data due today for the euro, but the Euro-group meeting is going on so it would be great to follow the technical levels. The euro is trading at 1.3710 right now in the Asian session where a move below its today’s pivot point level 1.3701 could allow it to fall further to its support levels of 1.3694, 1.3688 and 1.36670. The short-term bullish zone would remain intact for the pair as long as it remains above the 1.3603 support mark.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org