Euro rose from near a three- month low against the dollar on speculation that German Chancellor will signal Europe’s largest economy plans to take action to help avert the financial turmoil in the region. Sterling maintained a slightly bullish tone with the market once again buying the dip towards 1.41. February CBI Orders weakened to -56 vs. -45 forecast. Also released the MPC minutes showed a 8-1 vote for the rate cut with Blanch flower calling for a bigger cut. U.K. revenue figures to be announced today may show a slump as a result of the government's capital bailout of banks and lower receipts from bonuses and the financial services industry.
Technical Outlook:
EURO R1: 1.2790 S1:1.2440
R2: 1.2820 S2:1.2420
Chart pattern hints bear note for the day . Trading range for the day is expected between 1.2500-1.2780 levels for the day. If the currency is able to sustain below the psychological support of 1.2500 then we can see a free fall to 1.2420 and 1.2390 levels. Momentum and stochastic indicators are pointing down.
GBP R1: 1.4390 S1: 1. 4040
R2: 1.4410 S2: 1. 4020
Chart pattern signals a mixed to bearish movement for the day. Trading range is expected between 1.4060-1.4380 levels for the day. Currency is trading on the the moving average and Momentum and stochastic are seen trending down giving bearish crossover supported by parabolic.
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