Euro weak economic data and risk aversion weighed on the pair with heavy EUR/JPY selling dragging the major through support at 1.2800. December Industrial Production drop -2.6% vs. -2.1% forecast. The late Dow rally saw a sharp bounce back to opening levels. Looking ahead, Q4 German GDP is forecast at -1.8% vs. -0.5% previously. Also released, Q4 Euro zone GDP is forecast to drop -1.3% vs. -0.2% previously. Sterling was one the worst performing currencies with the pair not finding support until the 1.41 figures was seen.
Technical Outlook:
EURO R1: 1.2990 S1:1.2800
R2: 1.3010 S2:1.2790
Chart pattern hints a small bull correction for the day . Trading range for the day is expected between 1.2830-1.2980 levels for the day. Currency is seen trading above the moving average giving bullish outlook. Stochastic and momentum are seen trending up supporting the outlook.
GBP R1: 1.4460 S1: 1. 4110
R2: 1.4480 S2: 1. 4060
Chart pattern signals a bearish crow pattern for the day. Trading range is expected between 1.4130-1.4450 levels for the day. Currency is trading below the moving average giving bearish crossover and Momentum and stochastic are seen trending down giving bearish crossover .
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