The technical levels are being fully abided by the traders whether we talk about the euro, pound, or even the Australian dollar where the euro and pound have topped and are extremely bullish at the moment whereas the Aussie is struggling as is it targeting to test 0.9000 in the short-term.
The euro further gained today in the Asian session and is currently trading at 1.3591 after testing the resistance level at 1.3602. The European session is coming up with some fundamentals for the Eurozone German Consumer Climate and 10 year bond yield data would be released; whereas, later in the U.S. session the U.S. core durable goods orders data and the unemployment claims are due. The economic indicators of the U.S. are the centre of attention, and one sided data could cause abrupt volatility in the market and shape the direction accordingly.
The euro is safe to keep as a long position if it does not move below its today’s pivot point at 1.3559, because breaking of which could lead it to test 1.3538 and 1.3516.
The British pound took its 1.6150 support level very seriously and since last Friday the bulls have yet again managed to take the pair up and tested 1.6225, after which the pair is trading at 1.6216. The economic indicators for the British pound that are set to be released today include the second estimate of GDP, prelim business investment and CBI realized sales. The most important one is the GDP estimate that would show what shape the economy is as the monetary policy makers would extract the idea from it as to whether they need to raise the interest rates in the near future or not.
Pound is safe to buy if it remains above 1.6193, but the overall critical level is 1.6150 which separates the bullish zone from the bearish zone.
The metal is taking its bullish correction of the fall it witnessed on Tuesday, where it bounced back from 1237 area and is currently trading at 1245.42. It is expected to remain in this range in the European session, but can fall sharply if the U.S. data come out to be better than expected.
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