Euro and Pound picking up bullish mometum-Mar 18.

Euro closed above 1.3000 as the market consolidated the recent strength and EUR/JPY grinded higher tracking the Stock market. Some focus on ECB stark with bullish comments that the rate cutting cycle may be at an end and that a 0% rate policy may do more harm then good. German Zew Current conditions (March) at -89 was slightly better than -90 forecast. . Looking ahead, ECB President Trichet speaks. Sterling traded under 1.4000 briefly as the markets sold the pound on news in the Financial Times that the UK may lose another 1 Million jobs. Speculation that the BoE will begin buying Bonds also adding to bearish mood in Early Europe. Buoyant stocks finally won the battle and pair finished roughly where it began. Looking ahead for January ILO is forecast at 6.5% vs. 6.3% currently. Also MPC minutes are released forecast at 9-0.

Technical Outlook:

EURO R1: 1.3100 S1:1.2940
R2: 13120 S2:1.2920
Chart pattern hints towards a mixed outlook for the day . Trading range for the day is expected between 1.2950-1.3080 levels for the day. Currency is trading well above the moving average giving bullish outlook but the Momentum is getting weakened giving indication for a downward correction.

GBP R1: 1.4090 S1: 1. 3950
R2: 1.4110 S2: 1. 3930
Chart pattern signals a bullish correction for the day. Trading range is expected between 1.3980-1.4070 levels for the day. RSI and stochastic are seen trending up and Currency is trading above the moving averages confirming the bull note But parabolic is giving a caution