The traders who followed our yesterday’s trade suggestions from our forex report must be earning pretty well by now, as the technical levels allowed those moves to inflate the number of pips earned. The key driving force for these moves was the ADP-Non-farm employment data which showed that the U.S. economy added 238,000 jobs in this sector.
The euro lost against the greenback yesterday just after moving down its yesterday’s pivot point level, where it lost 60 points and bounced back from the support area of 1.3562. The pair is currently trading at 1.3581 in the Asian session where a move above the resistance level of 1.3587 could take it to 1.3604 and 1.3621. The German industrial production data is due to be released today where a bad outcome could further take the euro down from its yesterday’s support.
The sellers are ready to enter the market for GBP/USD where their pending sell orders have been hit already, where momentum would get strong if the pair moves below its pivot point level of 1.6436. However, the interest rate and asset purchase facility data are due today where if interest rates are held at 0.5% then sellers would enter, but if interest rate is increased then the bulls can take the pair as high as 1.6531 within minutes.
Aussie Building Approvals
The building approvals in the Australian economy contracted by 1.5% in the previous month that is quite a negative indication for its housing sector, plus it shows that the consumer spending has dropped down when it comes to the real estate sector.
The pair instantly dropped and lost 40 points today and is currently trading in short term bearish zone, where it would be very good for selling if it remains below the 0.8930 resistance level. However, investors are waiting for Friday’s release of U.S. job numbers where a one side data can easily change things around, not only for these major pairs but for the commodities as well.
To contact the reporter of this story: Jonathan Millet at email@example.com