Euro opened the week under pressure as US futures pointed to downside and Newspapers over the weekend focused on the weakened debt structure of Eastern Europe. Looking ahead, German Zew Survey Current forecast to fall to -81 vs. -77 previously .Sterling opened sharply lower falling to supports from last week before confirmation that the UK government wasn’t thinking of Nationalizing Lloyds and BoE Member Bean hinted at stimulus measures let the pair rally back to 1.43. Looking ahead for January CPI forecast at -1.0% vs. -0.4% previously. Also Released January RPI forecast to fall -1.5% vs. -1.4% previously.
Technical Outlook:
EURO R1: 1.2790 S1:1.2570
R2: 1.2820 S2:1.2550
Chart pattern hints a small downward correction for the day . Trading range for the day is expected between 1.2580-1.2780 levels for the day. Currency is seen trading below the moving average giving bearish crossover. Stochastic and momentum are seen trending down supporting the outlook.
GBP R1: 1.4360 S1: 1. 4040
R2: 1.4380 S2: 1. 4020
Chart pattern signals a bearish movement for the day. Trading range is expected between 1.4060-1.4350 levels for the day. Currency is trading below the moving average and Momentum is seen flat and stochastic are seen trending down giving bearish crossover supported by parabolic.
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