Euro dropped after the US jobs data was released falling heavily from the 1.3700 level to slide under 1.3500. European Retail Sales beat forecasts at 0.6% vs. 0.1% expected in November. German Industrial Production continued to deteriorate to -3.1% vs. -2.0% expected in November. Sterling was better supported than the EURO but did come under pressure falling from 1.53 to 1.51 as the USD was bought up after the employment data. December PPI input was down -2% and Output PPI was flat at 0.0%.
Technical Outlook:
EURO R1: 1.3480 S1:1.3280
R2: 1.3510 S2:1.3270
chart pattern indicates the currency to give bearish note for the day. Trading range for the day is expected between 1.3290-1.3460 levels for the day. Momentum is seen trending down giving bearish signals and currency is also trading below the moving averages supporting the bear note but stochastic is giving caution signal.
GBP R1: 1.5220 S1: 1. 4960
R2: 1.5250 S2: 1. 4950
chart pattern shows the currency to remain mixed for the day. Trading range is expected between 1.4980-1.5210 levels for the day. Currency is trading above the moving average and parabolic is also supporting bull note and stochastic is also seen trending down but caution is given by Momentum which is seen trending up.
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