Choppy Waters, Prudence is Needed!

By TraderVox.com

Tradervox.com (Dublin) – It is a tough day for the Euro today as Moody downgraded Italy, Spain and Portugal. The Greek deal is also on the radar with tomorrow’s meeting of European leaders. The single currency traded mostly in red below 1.3200 levels during the Asian session. But during the European session, it surged with positive data from Germany and also successful selling of Spanish bonds. 

Economic sentiment came at 5.4 against the previous figure of -15. Industrial production dropped to -0.2% against expected decrease to -0.1%. Euro has come below 1.3200 levels and is currently trading around 1.3296, slightly in green for the day. The support may be seen at 1.3160 and below at 1.3090. The resistance may be seen at 1.3200 and 1.3250.

Sterling pound also traded down during the Asian session but pulled back in late Asian session and also during the European session. It went briefly below 1.5700 levels to form a low of 1.5685. It is currently trading around 1.5755, down 0.10% for the day. The support may be seen at 1.5730 and 1.5700. The resistance may be seen at 1.5800 and 1.5850. Mixed set of numbers came from UK. CPI came as expected at 3.6%. DCLG housing prices came better than expected at 0.1% against expected -0.1%. Retail price index came below at -0.6% against -0.4% expected.

The USD/JPY pair crossed an important 78 levels and printed a high of 78.18. Bank of Japan introduced 10 trillion Yen and the pair rose in response to this. It is currently trading around 78.05. The support may be seen at 78 and the resistance may be seen at 78.20.

Australian dollar also struggled against the US dollar during the Asian session and traded below 1.0700 level. During the early European session, it has retraced the losses and has come above the important 1.0700 level. It is currently trading near 1.0715, down about 0.15%. The support may be seen at 1.0700 and below at 1.0670. The resistance may be seen at 1.0750.

The USD/CHF traded in positive territory during the Asian session. But it failed to take out 0.9200 levels. But now during the European session it has given up the gains and is trading near 0.9150, down about 0.15%. The support may be found at 0.9100 and below at 0.9070. The resistance may be seen at 0.9200.

US dollar index is trading above 79 at 79.06.

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