Euro was volatile holding to a tight range until the ECB meeting where they cut as expected to 2.0% from 2.5% previously. ECB President Trichet noted that the next meeting of note will be in March when further GDP and Inflation data is available. Traders took this as a pause on rate cuts and bought up the Euro to day highs before stock weakness and large falls in Oil pushed the Euro lower. Looking ahead for November Trade Balance previously at 0.9bn. . Sterling rose as the European Central Bank lowered its benchmark rate, prompting traders to bet it will keep easing borrowing costs while the Bank of England nears the end of its rate cuts.
Technical Outlook:
EURO R1: 1.3330 S1:1.3060
R2: 1.3350 S2:1.3040
chart pattern indicates the currency to give a small upward correction for the day. Trading range for the day is expected between 1.3080-1.3320 levels for the day. Momentum is seen trending up giving bullish signals and stochastic is also supporting the same. But caution signal is given by the moving averages which is supporting the bear note.
GBP R1: 1.4900 S1: 1. 4620
R2: 1.4930 S2: 1. 4580
chart pattern shows the currency to remain sideways to bullish for the day. Trading range is expected between 1.4630-1.4870 levels for the day. Currency is trading between the moving average and stochastic is also seen trending up giving bullish crossovers .
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