The much anticipated decline in the major pairs is confusing the traders as they take different directions and do not abide by any correlation whatsoever these days. The euro lost 65 points against the U.S. dollar yesterday in the European and early U.S. session as the U.S. economy grew by 3.6% in the 3rd quarter of 2013. That is way better than the previous reading of 2.8% in the 2nd quarter.
However, the pair immediately bounced back from the 1.3540 level as we mentioned before that buyers may start entering at this level yet again, and so they did yesterday and took the pair up to 1.3680 after this 120 points spike in half an hour.
The euro is currently trading at 1.3657 in the Asian session here on Friday where markets may remain stagnant till the start of the U.S. session, as the non-farm payrolls and U.S. unemployment rate is set to be released. Who knows that this bullish move from last night is a manipulative move and could be a preparation for a massive bearish rally, provided the job numbers disappoint USD investors big time.
Pound in Short-term Bearish Channel
The British pound remained in a range yesterday, but everyone must know that this pair has entered the short-term bearish zone and is still sustaining below the critical level of 1.6375 below which sellers would feel comfortable to short the pair. The BoE has kept the interest rate the same at 0.5% and as well as the asset purchase facility but the all eyes are on the U.S. job numbers today, as the services PMI of the UK did not do much to build bullish momentum for the pair. The next support levels for GBP/USD are 1.6310 1.6296 1.6278 and 1.6258; whereas, a move above 1.6375 would be safe for the buyers to enter the market.
Aussie Move, Done
On the other hand, the Aussie has completed its bearish move of more than 300 pips and after testing 0.9000 it is heading back upwards but important resistance level is 0.9086, breaking above which could make it easier for buyers to enter the market.
To contact the reporter of this story: Jonathan Millet at email@example.com