Euro continued its buoyancy overnight trading above 1.3700 for the first time since January 2009 on bets the Federal Reserve’s plan to buy Treasuries will push down yields on U.S. assets and prompt investors to seek returns elsewhere. With the ECB’s reluctance to adopt a quantitative easing policy, flight to the single currency proved popular amongst investors.. Focus will shift to the EZ trade balance figures released on Friday with forecasts at -0.9 bln compared to the previous reading of -0.3 bln. Sterling traded above 1.4500 supported by the Fed plan to purchase bonds. Although the rally was subdued (relative to other majors) with views that the BoE plan to instill there own quantitative easing last week may counteract that of the FOMC.
Technical Outlook:
EURO R1: 1.3750 S1: 1.3520
R2: 13770 S2: 1.3500
Chart pattern hints towards a wide range of 1.3530-1.3730 levels for the day .Momentum and stochastic are seen trending down and currency is seen on a sell off note as it has breached upper Bollingers and Relative market index is also pointing down.
R2: 13770 S2: 1.3500
Chart pattern hints towards a wide range of 1.3530-1.3730 levels for the day .Momentum and stochastic are seen trending down and currency is seen on a sell off note as it has breached upper Bollingers and Relative market index is also pointing down.
GBP R1: 1.4560 S1: 1. 4360
R2: 1.4580 S2: 1. 4350
Chart pattern signals a small downward correction for the day. Trading range is expected between 1.4380-1.4550 levels for the day. RSI and stochastic are seen trending down and Currency is trading above the moving averages giving a caution signal.
R2: 1.4580 S2: 1. 4350
Chart pattern signals a small downward correction for the day. Trading range is expected between 1.4380-1.4550 levels for the day. RSI and stochastic are seen trending down and Currency is trading above the moving averages giving a caution signal.
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