Euro took out large stops under 1.25 to hit new 3 month lows before the china story took hold dragging the pair higher with US stocks. February PMI was revised slightly higher to 39.2 from 38.9. Looking ahead for German Retail Prices seen +0.2% in January. Also released, ECB Rate .Sterling once again bounce off the 1.400 level as USD was at maximum strength in Asia before rebounding sharply to 1.4200 on GBP/JPY buying. Looking ahead, BoE is Expected to cut by 0.5% from 1% to 0.5%. Halifax HPI forecast at -2% vs. -1.9% previously.
Technical Outlook:
EURO R1: 1.2700 S1:1.2500
R2: 1.2720 S2:1.2460
Chart pattern hints sideways to bearish for the day . Trading range for the day is expected between 1.2520-1.2690 levels for the day. Currency is trading between the fast and slow moving average giving sideways direction .Momentum and stochastic are seen are pointing down hinting towards a downward correction.
GBP R1: 1.4260 S1: 1. 4010
R2: 1.4280 S2: 1. 3970
Chart pattern signals a bullish movement for the day. Trading range is expected between 1.4020-1.4240 levels for the day. Momentum and stochastic are seen trending down giving bearish signals but Currency is trading on the the moving average only a break below can confirm the trend.
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