The Euro came under pressure during the European session as a raft of data disappointed. July Preliminary Services PMI came in at 48.3 and the Manufacturing PMI came in at 47.5. The German IFO Business Climate Index came at 97.5. Looking ahead for June Import Prices seen up 1%. The Sterling fell heavily as UK retail sales hit a record low for June falling 3.9% after rising 3.6% in May. The cable broke out of its recent range, breaking through the downside and giving up most of yesterday’s impressive gains against the EURO and JPY. Looking ahead for Preliminary 2nd GDP with a for cast of 0.2% vs. 0.3% in the 1st.
Tech outlook:
EURO is expected to trade in the range of 1.5620-1.5730.With Good support seen at 1.5600 level and key resistance is seen at 1.5750 levels. Currency is trading well below the moving average. Chart pattern shows the possibility of slight upward correction as Momentum is hinting towards a slight upward correction.
GBP is expected to be mixed for the day and trade in the range of 1.9770-1.9920.With good support seen at 1.9750 levels and resistance for the currency is seen at 1.9930 levels. Chart pattern hints towards a small downside correction for the day. Currency is trading below the moving average giving bearish crossovers for the day and stochastic is also trending down.
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