Euro broke below year lows as Trichet released some dovish comments on the direction of future European Interest rates which the ECB held at 4.25%. Also broken last night was the long term trend line at 1.3925. Large losses in Oil also weighed. Looking ahead for Retail Sales in August are expected at 0.1% vs. -0.4% previously. Also release the Euro zone PMI services seen at 48.2. Sterling weakened against the USD but losses were not as bad as the Euro. UK data was weak but near expectations at -1.7%. UK Construction PMI fell further to 38.8 and is at a very low level well below.
Tech Outlook:
EURO: R1: 1.3920 S1: 1.3730
R2: 1.3940 S2:1. 3720
Euro is expected to give a downside correction for the day. Currency is expected to Trade in the range of 1.3750-1.3910 levels for the day. Stochastic and momentum are seen trending down and are signaling towards the bear note .Currency is also seen trading between the moving averages.
GBP R1: 1.7800 S1: 1.7570
R2: 1.7820 S2: 1.7550
pound is expected to trade in red with the trading range of 1.7590-1.7790 levels. Stochastic and momentum are seen trending down and are signaling towards the bear note .Currency is also seen trading between the moving averages.
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