Euro surged to its largest one day gain this year on broad USD weakness and the single currency’s status as the world’s second reserve currency. Reports of central bank diversification out of US dollars and a record rally in Oil combined to support the Euro. Looking ahead for July Industrial Orders M/M seen down -0.7% from -0.3% in June. Sterling gained in sympathy with the Euro although at a slower pace given some continued weak data. UK Right move Index fell -1.0% in September. Cable surged through 1.8500 with stop loss propelling it quickly to 1.8600 before settling back into the US close.
Tech outlook
EURO: R1: 1.4890 S1: 1.4710
R2: 1.4920 S2:1. 4700
Euro is expected to trade on a bull note. With the trading range expected between 1.4720-1.4880 levels . currency is seen trading above the moving averages and stochastic is seen flat and caution required as it is trading in the overbought levels. parabolic is also giving bullish signals .
GBP R1: 1.8690 S1: 1. 8460
R2: 1.8700 S2: 1.8450
pound is expected to have a bullish note with the trading range of 1.8480-1.8680 levels. Stochastic and momentum are seen flat and it is likely to give a downward correction as it is seen in a overbought levels but market is seen trading above the moving averages .
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