Today’s Levels

Last Thursday and Friday were really good for the US Dollar. The USD index jumped near the heights of the last 7 years. EUR/USD broke the support line of the range that they were stuck in for the whole month and opened lower last night.
That means that the market sentiment for this pair and for GBP/USD is bearish, so today we´ll try to sell on the pull-backs. 
 
Today is Monday and we know that Monday's are quiet, but we´ve had a surprising amount of data this morning.
Even though in expansion, the Italian and Spanish manufacturing were disappointing, the Euro Zone unemployment
and inflation posted some good numbers, which gave EUR/USD a boost to 1.1230. This is the pull-back we were waiting for
and we already opened a sell signal at 1.1210. We jumped a little too early on that one, but we increased the stop to 1.1255.
I think that last Friday’s resistance at 1.1245 will contain this pair from any more gains so the stop above that level feels safe for now. If it gets around 1.1245 we´ll consider adding another sell signal for this pair.

So,  what about the GBP/USD?
This morning the manufacturing data from the UK was pretty good, but the bounce in GBP/USD has been minimal so far, even with the USD weakness. So it looks safer to sell this pair. The first level to consider selling is the 100 MA around 1.5420.
We missed a chance to open a sell signal there because the price touched it about an hour ago and slid back down, so we'll
sell if it gets back there. If it moves past that MA the next level is last Friday´s resistance at 1.5440-50. That´s where the 100 MA comes as well, so we´ll open a sell signal with a larger profit target if we get there today.
The only thing which might ruin this scenario is the US data which is due in the afternoon. 

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.