Euro outlook-Mar 31

EURO paired its gains largely on profit taking ahead of the weekend on signs of building inflation pressures in the Euro zone which dampened hopes for any European Central Bank rate cut soon while banks and oil stocks also dragged the index lower. A data filled day kicks off the week in the Euro zone with Consumer Confidence (Forecast: -12; Previous: -12), CPI estimate (Forecast: 3.3%; Previous: 3.3%), and Business Climate (Forecast: 0.7%; Previous: 0.72%).
Euro is expected to trade in the range of 1.5720-1.5870.With good support seen at 1.5710 levels and resistance for the same is seen at 1.5890.Break of resistance will see the currency back at 1.5900 levels. Stochastic and Relative Market strength index is trading at overbought territory giving clues for the possibility of Market correction. Currency is trading on the Fast moving average so only a break of 1.5770 would give confirmation on the bear trend.