The last stage of the pair of upward movements in the last hour could be attributed solely to higher buying interest in US dollars. Rising prospects for an additional move by the Fed's rate hike and renewed optimism about US tax reforms continued to support the strong bullish sentiment that prevailed around the dollar.
Meanwhile, a modest decline in crude oil prices also weighed heavily on the commodity currency (Loonie) and also helped the pair rise sharply through the European session.
Currently placed at the peak of the session, around the 1.2520 region, traders now await today's economic agenda, highlighting the PMI printing of United States ISM manufacturing, for a new impetus.
Technical levels to observe
The bulls would be looking for a follow through buy interest beyond 1.2530-35, above which the pair is likely to aim to claim the 1.2600 area before eventually moving around 1.2620-25.
On the other hand, any recoil below 1.2500 could continue to find immediate support near the 1.2460 region (SMA of 50), which if broken could accelerate the movement towards the horizontal support 1.2425-20.
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