Euro bounced back above 1.2600 level as EUR/JPY buying emerged on the back of AUD/JPY buying after the RBA meeting. Gains topped out in Europe and fell back as US stocks reversed early positive sentiment. German January WPI fell -0.4% vs. -3% forecast. Looking ahead, February PMI forecast at 38.9 vs. 42.2. Sterling tested 1.400 again as reports emerged that the BOE was considering Quantitative Easing as early as this month. The rebound from Heavy GBP/JPY buying was capped in Europe as February Construction PMI fell to a record low 27.8. The market is pricing in a 0.5% rate cut. . Looking ahead, PMI Services forecast at 41.8 vs. 42.5 previously.
Technical Outlook:
EURO R1: 1.2600 S1:1.2420
R2: 1.2610 S2:1.2400
Chart pattern hints for bear note for the day . Trading range for the day is expected between 1.2430-1.2590 levels for the day. Currency is trading below the fast moving average and Momentum indicators are pointing down giving room for bearish note for the day.
GBP R1: 1.4090 S1: 1. 3900
R2: 1.4100 S2: 1.3890
Chart pattern signals downward movement for the day. Trading range is expected between 1.3920-1.4080 levels for the day. Currency is trading below the the moving average and the trend indicators Momentum and stochastic are seen also trending down giving bearish signals for the day.
R2: 1.4100 S2: 1.3890
Chart pattern signals downward movement for the day. Trading range is expected between 1.3920-1.4080 levels for the day. Currency is trading below the the moving average and the trend indicators Momentum and stochastic are seen also trending down giving bearish signals for the day.
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