The euro bounced back from the mild resistance area of 1.3568 today in the European session as the German economic sentiment outcome disappoints to meet the expected figure, but instead contracted down to 61.7 mark from its previous reading of 62.0.
The euro is currently trading at 1.3533 against the US dollar where bulls are nowhere near to be entering the market, since the overall outlook is bearish as the critical resistance level lies at 80 points above.
Bullish for Now
The CBI industrial order expectations data is due today for the British Pound where better than expected outcome could further lift the pair up to its next resistance levels at 1.6464 1.6486 and 1.6503. However, on the other hand if the outcome comes below the expected figure of 10 then the sellers might bring the pair down to its support levels at 1.6418 1.6407 and strong support that is there at 1.6390.
Look ahead, but Down
The outlook of the Australian dollar was bearish and still is where the pair seems to be respecting the desire of the Reserve Bank of Australia that said last year it wanted to see the currency at 78 US cents value. This does not seem to be impossible because just around 900 points to go, and if the pair can lose 250 points in 2 days, then we surely can see the pair going down to 0.8000 mark within a month or so. Keep selling the pair on the tops because the pair would of course take its bullish correction where it is expected to go till 38.2 and 50% retracement levels on Fibonacci scale. The pair would remain in bearish channel if it trades below the main resistance area that is there at 0.8907, where pending sell orders are set and could be triggered if the pair moves up till this level.
To contact the reporter of this story: Jonathan Millet at email@example.com