Ever heard of the term ‘thin trading’? Well, you just saw this today. This is the type of trading that we normally see in such time periods where we have holidays in major parts of the world simultaneously. The market remained sluggish and played in a really short range where no movement was enough to trade even for the scalpers.
The euro started off with the 1.3685 level after which it remained still the whole European session, but gained around 12 points in the U.S. session as the personal spending data of the U.S. could not satisfy the USD investors. Currently the pair is trading at 1.3696 where it would remain bearish as long as it trades below the critical resistance level of 1.3723.
A move below 1.3674 could be alarming for the euro, as it could drop down to 1.3640 and 1.3620, breaking of which could show 1.3595.
Do not sell Aussie at this moment. Yes, the technical levels were shaped on Monday where the price didn’t move much, but the support level dropped down to 0.8917. However, on the other side the pair is trading at 0.8934 where it would be closing above the 0.8917 level most probably, so from now on the buyers might be interested in riding the pair as long as the price stays above this support level.
It is highly recommended to the traders that they do not trade this pair at least for now, since the pair is very choppy at the moment and could not find a clear direction. It is the second day where it is closing at the exact boundary line that separates the short-term bearish zone with the bullish one.
The tip for the buyers is that they can enter when the price moves and sustains above 1.6383; whereas, the sellers can feel free to short the pound when the price moves below the support level of 1.6320 where it has made a triple bottom.
To contact the reporter of this story: Jonathan Millet at email@example.com