Despite the release of worse than expected German ZEW Economic Sentiment data that came out to be 36.3 against the expected figure of 39.8, the euro gained more than 75 points on Tuesday against the U.S dollar. The pair bounced from its pivot point level of 1.3052 and managed to go up and sustain above the 1.3109 critical level. Later on in the U.S session, it further went up as the Core CPI data of the U.S didn’t really delight the USD investors.
Currently the pair is moving at 1.3156 in the early hours of Asian session, where a move above the resistance level of 1.3170 could take it to the 1.3197 area where sellers may enter again. However, the pair is currently bullish for the short-term as it is moving well above the 1.3095 level.
The inflation numbers for the U.K. disappointed the investors where the CPI level came out to be 2.9% against the expected 3.0%, which resulted in a sharp 40 points dip in the pair, but later in the U.S. session the pair gained around 100 points to take it up to the 1.5160 level from the 1.5055 support area.
Currently the pair is moving just below its strong resistance level of 1.5156 where a move below 1.5120 could take it down till 1.5093, breaking of which could show 1.5057 and 1.5025. Whereas on the upward side, a sustainable move above to 1.5156 could extend the bullish move and take the pair up till 1.5174 and 1.5192.
Despite the poor data from the Chinese economy where it grew by 7.5% against the expected 7.7%, the pair didn’t get affected in a negative way but instead bulls started entering the market that took the pair significantly up by around 190 pips from Monday’s U.S. session till now. The pair is currently at 0.9246 where it is in a short-term bullish zone, where its next resistance levels are at 0.9280 and 0.9313.
Is it All about Bernanke Today?
The U.S. stock market lost its Tuesday’s and Monday’s gain within 2 hours in the U.S. session on Tuesday over concerns that the FED chairman may buttress the greenback tomorrow and might hint of curtailing bond buying measures. The important point to note here is that this bullish move in all these three pairs is apparently unjustified according to fundamentals, hence it may be the speculation by the big traders and institutions who want to get a good selling price so that they could short these pairs heavily on Wednesday’s speech by Ben Bernanke.