The Euro has been under the control of bulls for the past 4 trading days as it continued the bullish move today in the London session as the Manufacturing and Services sector of France and Germany showed considerable improvement and expanded as compared to the previous month’s reading.
After gaining more than 50 points today, the pair is currently trading at 1.3240 where a move above its resistance level of 1.3262 could take it to 1.3278 and 1.3300. Whereas on the downward side, if it manages to break its daily pivot point at 1.3204 then it may go down to test its support levels at 1.3187 and 1.3170.
The pair would remain bullish as long as it trades above 1.3150 so buyers may feel free to buy above this level. Next up are the U.S flash manufacturing PMI data along with New home sales, where a good movement may be seen in the market provided the data comes one-sided.
The pound gained significantly on Monday for more than 80 points even though there was no fundamental due for it that day; however, many analysts say that having a baby boy in the Royal family would give a boost to the U.K economy by around 375 million dollars as he would be the next heir of the reign.
The pair remained in range so far and is currently trading just above its daily pivot point, where a move below 1.5358 could take it down to 1.5330 and 1.5309, breaking of which could show 1.5277. The pair has failed to break its strong resistance level of 1.5391 this week after attempting it more than two times, hence there are chances that sellers may enter in the market with tight stop losses. If it manages to break that resistance level, then its next targets would be 1.5407 and 1.5423.
Is the Aussie Bearish Again?
The Australian dollar gained against the greenback for the past three days but fell sharply today by more than 80 points as the Australian Inflation numbers did not satisfy the investors because despite reducing the interest rate and increasing the flow of money in the market, the inflation is not increasing and is well below the target level. The inflation grew by 0.4% in the second quarter against the expected 0.5%.
Currently the pair is trading at 0.9216 after breaking its critical supports, and would remain bearish as long as it does not move ABOVE the critical level of 0.92280. So selling would be safe below this level.