The Asian session here on Monday started with a small dip taken by the major currency pairs, where the euro is playing at 1.3532 where its today’s pivot point level of 1.3549 would be acting as a resistance for the euro. A move above this level would open the doors for the pair to test 1.3564 and 1.3580, where sellers would remain interested in shorting the pair as long as the pair survives below the critical resistance area of 1.3610.
The German PPI data is about to be released today in the European session, where the purchasing power index figures are expected to grow for the past month, where an outcome not meeting the expectations could result in a further drop of the pair to 1.3489 and 1.3473.
Hold your Buys
The traders are advised to keep their long positions open for the GBP/USD as long as the pair is trading above the price level of 1.6389, which separates it from the bearish zone as the sell stop orders are placed below this level and bears would enter heavily if the price moves below this important support level.
There is no fundamental due for the British Pound today, nor for the U.S. dollar since there is a bank holiday in the U.S. Therefore, the pair is expected to move around in a short range where setting stop losses accordingly would be a good idea.
Aussie and Eur/Jpy
The Chinese economic indicators showed a mixed outcome today, as its GDP expanded just slightly against the expected figure of 7.6% but contracted down by its previously recorded figure of 7.8%. The Australian dollar is no way near the level that allows safe buying, hence only scalpers looking for small correction profits can enter as buy.
As for the Eur/Jpy pair, the losses made earlier in the trading session have been offset by the bullish move but the trading is being done in a short-term bearish zone where sellers would keep selling the pair till the pair does not move above the resistance levels of 141.57 and 141.78.
To contact the reporter of this story: Jonathan Millet at email@example.com