The euro remained in a tight range on Tuesday where it failed to break the previous resistance level of 1.3280 and in fact made a double top at this point. There was no such critical fundamental due yesterday, however the French industrial production contracted to some extent.
The Syrian government has agreed on the Russian deal that they would allow other forces to access the spots where chemical weapons are hidden and would avoid the usage of those weapons, hence leading to no or negligible military attack by the U.S. Therefore, the concerns hovering over this political issue have calmed down after which it the U.S. stock market also gained and sustained above the 1680 level and gave closing above this.
The euro is currently trading at the 1.3267 level where it has completed its 61.8% retracement and is set to fall again. If it moves below the critical level of 1.3245 then its next target would be 1.3227 and 1.32100, breaking of which could show 1.3180. On the other hand, a move above 1.3280 could lead it to 1.3308 and 1.3323.
The GBP/USD pair is however doing well as it is taking that investor confidence forward where the U.K. economy is showing positive signs of recovery, plus the technical levels are also in favor of the bulls. The Claimount Count Change data is due today for the GBP, where a move above the 1.5742 resistance area could lead the pair to test 1.5767 and 1.5792. On the other hand, if it moves below 1.5680 then it may test its support levels of 1.5655 and 1.5630.
The precious metal remained bearish and lost its shine on Tuesday after the concerns regarding a war-like scenario faded, after Syria agreed a deal with Russia. Gold fell from the 1391 resistance level down to 1357 after which it closed at 1362. The metal is bearish and would remain good to short if it remains below the 1379 resistance level.
The greenback has been gaining for the past few weeks and is all set to go totally under the control of bulls, provided nothing extra-ordinary or out-of-the-blue fundamental happens. Technical levels show that the U.S. dollar would get stronger against the major currency pairs and gold, while the stock market would rise and may test the 1700 level yet again.
To contact the reporter of this story: Jonathan Millet at email@example.com