The U.S. dollar gained against the major currencies this past week where pressure remained there on the euro and Aussie as they continue their bearish rally so far this month. The euro remained in the short term bearish channel and kept on moving its critical resistance level that is coming downwards after almost every trading day.
The pair was trading at 1.3605 on Friday where the bears took it further down to 1.3540 after a 60 points bearish move, where the euro would remain in control of bears as long as it remains below the strong resistance level of 1.3623.
Done with Correction
The British pound was trading at 1.6305 in the early hours of the trading session on Friday after which it gave a sudden bullish spike that was around 130 pips long as the investors are getting hopeful of the U.K. economy where monetary policy makers might implement some changes that favor the GBP.
Moreover, the pair seems to have completed its bearish correction for the bullish rally it gave in December, so buyers entered the market once again and would remain confident to long the pair as long as the pair is above the critical support level of 1.6409 which was its critical resistance on Friday before the pair breached it.
The commodity currencies including the Australian dollar lost heavily this past week where the retail sales, building permits, and the employment change data of the Australian economy disappointed the Aussie investors, as a result of which the pair lost more than 250 points in just one week. Moreover, the Chinese economic indicators including money supply was not up to the mark, which often causes the Aussie to shake up as the Australian economy is very dependent on how China is performing.
To contact the reporter of this story: Jonathan Millet at email@example.com