The euro experienced a considerable bearish correction on Thursday after remaining in range for the past 3 days, where it lost around 100 points against the U.S. dollar on Thursday. Apparently the bears have closed the pair in the bearish zone which is below the 1.3250 critical level and it’s currently trading at the 1.3211 level at the start of the Asian session.
A slow movement may be seen in the market till the start of the U.S. session on Friday, as the traders are waiting for the massive data related to unemployment and new jobs added in non-farm sector. A move above 1.3250 would lead the pair to go on and test its next resistance levels at 1.3280 and 1.3317 and a move below 1.3202 can take it down till 1.3187 and 1.3155.
Pound’s Volatility at its Best
Giving a move of around 160 to 200 points in a day is something that is not unusual for the GBP/USD as it quite a volatile pair, and so it moved this much on Thursday where it fell around 110 pips after gaining earlier in the European session when the Manufacturing data for the U.K. came out much better than the forecasted figure.
Sellers would keep entering the market below the 1.5257 level that is around 150 points away from its current level of 1.5123 at which it is trading right now in the Asian session on Friday. Provided it breaks the support level of 1.5102, then bears could hit the next supports at 1.5073 and 1.5045. All depends on the NFP data, but the pound may show its pre-volatile move in the London session today as its Construction PMI data is set to be released where it is expected to grow slightly more than its previous reading of June.
BoJ’s easing and stronger USD
The easing from the side of BoJ continues as BoJ Governor hinted towards doing more to achieve inflation targets, and as a result USD/JPY gained a massive 190 points on Thursday without sideways or corrective movement. The bulls started entering at the 97.7 area and are still in control at the 99.53 level in the early trading hours of the Asian session.
Plus, the boost in the value of the USD due to good manufacturing PMI data of the U.S. caused the pair to gain even more. We can see a little bit downward correction at the 100.10 level, but the pair is good to buy as long as it remains above the 98.60 support level.
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