The markets opened in a mixed pattern on Monday where all three major pairs moved in their own separate directions, which apparently seem to be following their own technical levels. And of course, the traders who followed the technical levels mentioned by us in our previous report must have minted money so far.
The euro remained sluggish from the start of THE trading session today, where it hasn’t moved more than 10 points and is currently trading at 1.3666 in the European session, where it is facing the strong resistance level at 1.3682 that separates it from the bullish zone. The sellers are currently in control where heavy selling would be seen when the price of the pair moves below its today’s pivot point of 1.3648, which is currently acting as a support.
The British pound closed at the strong resistance level on Friday at 1.6500, from where it bounced back sharply today as soon as the London trading session started. The pair dropped by around 65 points and is trading just above its critical support level of 1.6424, which separates it from the bearish zone.
Currently, the pair is in the consolidation zone where it would be good to buy if it moves above 1.6467 and good to sell below the support level of 1.6424. Provided that it moves below 1.6424, it would target its next support levels of 1.6390 and 1.6357.
As mentioned before, that if the pair moves above the psychological resistance level of 0.9000 then it would further surge and so it did. The pair breached that resistance area today and is currently trading at 0.9037 after gaining around 40 points where it faces another resistance at 0.9055.
The pair is strongly bullish where selling at this point in time is only good for scalping purposes to catch some pips from retracement on the Fibonacci scale; however, those who want to short the pair must wait until the pair moves below the 0.8930 critical support area.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org