The Australian dollar opened in a bearish gap of nearly 40 points after which it has bounced back from the support level of 0.8890 and is currently trading at 0.8918. The interesting point to note here is that it has filled its gap today in the European session and is ready to move downwards yet again as the overall outlook remains bearish. The pair would remain a good opportunity to sell for the traders as long as it is moving below the major resistance level of 0.8988 which is nearly 75 points away from its current trading price.
The economic indicators of the Australian economy including the new home sales, job advertisements, and company operating profits didn’t come out to be pleasing for the investors so bulls are staying away from the market as of now; however, other critical indicators to be released in the coming days could shape the situation totally.
manufacturing PMI data was neither good nor bad for the UK economy where the manufacturing sector of the country grew with exactly the same rate as it did in the previous month. The investors are taking this rate of growth as a positive sign and have added nearly 20 points to the GBP/USD pair in the European session today so far.
However, key resistance areas are up there at 1.6744 1.6750 and 1.6765, breaking of which isn’t that easy but if it manages to move above these levels then it could go as high as 1.6783 and 1.6801.
Long the Euro
The Euro is trading at its support level where its today’s pivot point level of 1.3769 is acting as a support where the pair might be looking forward to test its mild resistance areas of 1.3807 and 1.3825, above which it would be free to go and test 1.3845 and 1.3872.
However, Mario Draghi’s speech might bring high volatility today in the pair, where dovish comments could bring the pair down to 1.3714 and 1.3678, below which sellers would rush into the market and short the Euro.
To contact the reporter of this story: Jonathan Millet at email@example.com