Euro broke through the Key 1.5000 level and continued to fall testing the 1.4980 level . Falling Oil and a readjustment of Euro zone economic outlooks the main catalyst. Looking ahead, German Wholesale Price index which is expected at 0.5% in July. Sterling tracked the Euro lower breaking through supports at 1.9410 to year lows. Market is awaiting the BOE Inflation report for further Interest rate direction. . Looking ahead, July PPI Core Output is seen at 0.4%, PPI input at 1% and PPI Output at 0.5%. Also released the June trade Balance seen at -7.4Bln.
Tech Outlook:
EURO chart pattern hints towards a downtrend to continue for the day. With the trading range expected between 1.4890-1.5030.With good support seen at 1.4875 levels and key resistance is seen at 1.5050 levels. Stochastic is seen oversold territory but doesn't give any confirmation for uptrend. Currency is also seen trading below the moving average and also breached lower Band levels.
GBP chart pattern indicates bear note to continue for the day .With good support seen at 1.9030 levels and key resistance at 1.9220 levels . With the trading range expected between 1.9050-1.9210.MACD is seen well below the signal line giving Bearish crossovers. Currency is also trading well below the moving averages.
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