Euro falls on poor housing figures

Euro fell slightly against the USD overnight but rose to a record high against the sterling as poor housing figures and possible rate cuts overshadow the UK currency. The market is seemingly reluctant to heavily buy the Euro as they wait for the ECB rate announcement with expectations that ECB President Trichet is sound to a little more dovish in his economic outlook for the Euro Zone although rates are widely expected to remain unchanged at 4.0%. Euro is expected to trade in the range of 1.5610-1.5810.With key support seen at 1.5590 and resistance for the currency is seen at 1.5820 levels .currency is trading well below the fast moving averages giving clues for the downtrend Stochastic and Relative Market Strength index are also pointing towards the downtrend for the day. Averages of MACD line is also supporting the view.
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