Euro orbited 1.4000 during the day with profit taking and risk aversion failing to make a lasting impact on the pair. USD weakness has allowed a resurgent Euro to make substantial gains over the last week. May German IFO Business Climate was at 84.2 vs. 85.5 forecast. Looking ahead for March Industrial Orders are forecast at 0.8% vs. -0.6% previously. . Sterling was little changed with the market recovering from Asian losses during a quiet day of trade. Reports that China FX managers were ‘negative’ on the Pound did little to dent the bullish tone the pair has recently developed.
Tech outlook:
EURO R1: 1.4080 S1: 1.3850
R2: 1.4120 S2: 1.3770
Chart pattern shows a bearish note for the day. With the trading range of 1.3870 -1.4050 levels for the day. Stochastic and momentum are seen trending down but caution required as market is trading on the moving average only break below it can confirm the trend.
GBP R1: 1.6000 S1: 1. 5730
R2: 1.6020 S2: 1. 5720
Chart pattern is expected to be on a narrow trade for the day as the band width is narrow.. With the trading range of 1.5740-1.5980 levels for the day. Stochastic and momentum are seen trending down from the overbought area and the currency is also trading on the moving average only crossovers can confirm the trend.
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