The euro couldn’t break its critical level at 1.3070 yesterday and remained bearish as it fell in the European and as well as in the U.S session on Tuesday and made a fresh new low at 1.2962. The purchasing power index of the Eurozone disappointed the investors even though the Spanish unemployment claims fell substantially.
The pair is currently moving at 1.2968 where a break below its yesterday’s low of 1.2962 could drag it down further till 1.2940 and 1.2922. However, if it moves above the level of 1.2990 then its next targets would be 1.3010 and 1.3030, where it would remain bearish if it is trading below the level of 1.3065.
The bears had their firm control over the pair on Tuesday where it fell around 60 to 70 points and made a new low of 1.5135 and is currently moving at 1.5146. The pair is facing serious difficulty in changing its trend and would remain bearish as long as it does not make a sustainable move above 1.5302 resistance level.
The key fundamental to watch for today is the Services PMI which can certainly result in a good volatility in the pair as the services sector contributes more to the U.K economy. Provided that the pair breaks its yesterday low of 1.5135, then its next targets would be to test next support levels at 1.5126 and major resistance at 1.5107, below which it could experience a free-fall today.
Whereas, a move above 1.5172 could take the pair to test its pivot point area at the 1.5200 region, above this could create a bearish consolidation for the pair.
This pair is better known to be friendlier with its technical move rather than other small or medium-impact fundamentals, where price-action theory seems to be working best on Aussie as always. The pair bounced back from the 0.9230 region yesterday after the RBA kept the interest rate the same and kept falling where it made a low of 0.9156 in the U.S. session yesterday. However, today in the Asian session the bears took control and took the pair to mark a fresh new low of 0.9100 which is its major support.
Currently the pair is moving at 0.9110 where buyers seem to be entering at this level and may take the pair up as the Trade Balance numbers came out to be much better than expected that shows that reducing interest rate certainly helped the exporters in boosting up their exports.
However, a move below 0.9100 could take the pair further down till 0.9078 and 0.9054.