Euro remained on the back foot as economic data disappointed and speculation mounted ECB President Trichet might change tone on the European economy. June German Factory Orders fell -2.9% in a surprise fall with the markets expecting a +0.4%. Looking ahead for ECB Interest Rate announcement widely expected to hold at 4.25%. Also released the June German Trade Balance seen at $15 Billion, and Import Prices forecast to rise 1.4%. June German Industrial Production is expected at 0.8%. Sterling fell below the Key 1.9500 level on USD strength but was able to make gains against the JPY. Looking ahead for BOE Interest Rate announcement widely tipped to stay at 5.00%.
tech view:
EURO chart pattern hints towards a downtrend to continue for the day. With the trading range expected between 1.5340-1.5480.With good support seen at 1.5320 levels and key resistance is seen at 1.5500 levels. Stochastic lies in oversold territory but doesn't give any confirmation for uptrend. Currency is also seen trading below the moving average.
GBP chart pattern indicates bear note to continue for the day .With good support seen at 1.9430 levels and key resistance at 1.9520 levels .trading range for the day is expected to lie between 1.9420-1.9510.MACD is seen well below the signal line giving Bearish crossovers.
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