Forex Signal Providers Ranking On Sentiment For May 8, 2012
The pair remained in a 60 points range on Tuesday where it gained against the U.S dollar in the European session once the German Factory Orders data came out to be much better than expected. However, the data wasn’t too good to build up bullish sentiment for the investors in the Euro due to which the pair bounced back from its resistance level of 1.3135 and fell around 55 points in the U.S session. The pair managed to close above its strong support level of 1.3071 which may help the pair to gain a little today as well, but as long as it does not make a sustainable move above 1.3140 and closes above it, it would remain in bearish zone.
Currently the pair is moving around the level of 1.3088 that is just below its daily pivot point, and if it breaks 1.3095 the pair may head towards 1.3115 and re-attempt yesterday’s high of 1.3135, breaking of which could show 1.3160.
As on the downward side, if it breaks yesterday’s low of 1.3071 its next targets would be 1.3048, 1.3030, and 1.3027. Key economic indicator to watch today is German Industrial Production.
The pair fell sharply against the U.S dollar on Tuesday and made its technical move as the pair’s downwards retracement was due for the past several days. The pair started off trading in the European session below its daily pivot point at 1.5556 and kept falling even in the U.S session till 1.5450. Technically, the pair is now in the bearish zone as it closed below the level of 1.5520 yesterday.
Currently the pair is moving just above its support level of 1.5475 where a break above 1.5496 could open the doors for the pair to target 1.5515, 1.5535, and then yesterday’s high of 1.5556 area. As on the downward side, a break below 1.5457 may lead the pair to continue falling till 1.5437, breaking of which could result in sharp fall where psychological level of 1.5400 would be the point where buyers may enter the market.
Apparently the pair seems to be trading in a wide range of 100 to 130 points between 129.00 and 130.30 level, as 130.40 is a strong resistance level that the pair has not broken for the past several days. Based on this resistance level speculation, sellers enter the market at 130.20 area with tight stop losses, and this is what happened yesterday which led the pair to fall till 129.00 from which it retraced back upwards today in the Asian session. Currently, it is at 129.58, where a break above 129.8 could lead it to test 130.10 and yesterday’s high, breaking of which could pump the pair to break its strong resistance level and move ahead to test 131.00.
As on the downward side, it has strong supports at 129.20, 129.10, and 128.75, where buyers may enter the market again; therefore, a good volume of sellers would be there if the pair manages to break and make a sustainable move below 128.75.