Euro gained against most currencies as Oil rebounded and the equity rally stalled. Euro rose on American Express Co commented that profits dropped because of more consumers defaulted on loans, raising concern that the U.S. economic slowdown will deepen. Sterling was able to rebound off the lows of the day as markets digested comments from ultra dove MPC member Blanch flower that the UK was already in recession and news that HBOS share offering was severely under subscribed. Looking ahead for Bank of England Governor King speaks
Tech Outlook:
EURO is expected to be on a bull note for the day. With the trading range expected between 1.5870 -1.5970 levels for the day . currency has its support at 1.5850 levels and holds resistance at 1.5990 levels for the day. Currency is trading well above the moving averages and Momentum is seen trending up supporting the bull view. Caution is required as chart pattern and averages shows the possibility of downside correction .
GBP is expected to trade in the range of 1.9950-2.0073.With good support seen at 1.9920 levels and resistance for the currency is seen at 2.0095.Chart pattern hints towards a small downside correction for the day. Currency is trading on the moving average only a breach below(1.9990) can confirm the bear note.
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