Forex Currency Market Update
As mentioned in our yesterday's report about the expected fall of the Euro on Wednesday, and so it happened where the pair lost nearly 80 points. The pair didn't show much movement on the Existing home sales data of the United States that increased up to 5.39M in the month of July against the previous figure of 5.06M of June.
The bears started entering the market when FOMC meeting minutes started where most of the FOMC members understood that the U.S economy would pick up substantially in the 2nd quarter of 2013, whereas, labor market has showed significant improvement so far. The notion that was deduced from the meeting was that the option of tapering is definitely there and would most probably be used by the end of this year. The S&P 500 binary options are stable.
The Euro plunged from 1.3395 pivot point level down to 1.3339 support level within a few minutes, and is trading just above this support level in the early trading hours of Asian session on Thursday. Today there are several crucial fundamentals are due for the Euro where Manufacturing and Services PMI data are due, and later on the unemployment claims of the U.S would be released.
Provided the pair breaks below 1.3335 critical level, sellers would start entering and would take the pair to 1.3303, breaking of which could show 1.3267. On the upward direction, a move above 1.3395 could lead the bulls take the pair to re-test its Tuesday's high of 1.3450.
That triple top worked. The British Pound failed to move above its triple top resistance level near 1.5700 area after which it fell badly in the U.S session followed by the FOMC meeting, where it lost 90 points and is currently trading at 1.5629 level.
No such volatility was seen when the public sector borrowing data was released earlier yesterday; however, all eyes are on the U.S unemployment claims data. Technically the bears may take the pair down to the critical support level of 1.5568 if it manages to move below 1.5616 and 1.5603 support levels.
It must make a sustainable move above its pivot point at 1.5663 after which it would target 1.5688 and 1.5700 psychological level.
The Australian dollar is back in bearish streak where after losing 80 points on Monday and Tuesday, it lost further 60 points on Wednesday where it went down to test its support level at 0.8969. The pair is currently trading at 0.8978 and is in the bearish zone since Monday and would remain a good opportunity for the bears to sell as long as it remains below 0.9097 critical resistance level which is nearly 100 pips far from its forex currency market price level.
The next support levels waiting for the pair are 0.8940 and 0.8911 if it manages to break its yesterday's low of 0.8967; however, a move above 0.9015 could lead the pair to test 0.9044 and 0.9073 where sellers would try entering the market again.