The services sector data that came out today was not that impressive as it showed that the services sector expanded by lesser than the forecasted figure and as well as the one noted in October.
The British Pound dropped by 50 points immediately after the release of the indicator, where it tested 1.6328 support level and has taken its bullish correction by 35 points and is trading at 1.6360 just before the start of the US session on Wednesday.
A move below 1.6352 could drag it down back to 1.6338 1.6328 and 1.6304 where buyers may start entering the market again.
The Euro did not move much today as there was no critical fundamental; however, the retail sales of the Eurozone contracted by 0.2% for the month of November that led the pair to lose 20 points by the support was there at today’s pivot point level at 1.3570.
The pair is currently trading at 1.3589 where a move above 1.3598 could open the doors for the pair to test 1.3620 and then 1.3640 but it all depends on what kind of outcome we get from ADP non-farm employment change data, new home sales, and trade balance of the US economy. The Euro would remain bullish as long as it trades above the critical level of 1.3510, but sustaining below which could allow the sellers to enter the market more frequently.
Finally the target profit level was achieved by the Aussie today as we mentioned constantly in our previous reports that it would test 0.9000 support area since it was highly bearish.
The quarterly GDP data was not satisfactory for the Australian economy, hence it led to a sharp downward spike in the Asian session after which the pair tested 0.9010 support level and now buyers may start entering the market, but only on the basis of speculation. Those who want to take chance for buying, then they can set their stop loss levels at 0.8975 and sit in long positions, but again it depends a lot on the US fundamentals and especially Friday’s mega event of NFP.
To contact the reporter of this story: Jonathan Millet at email@example.com