Euro struggled at the 1.4000 level before falling heavily in the final hours of the day on the back on rising US yields. The pair fell to 1.3850 but speculated support failed to appear and the slide continued into Thursday. Also hurting the sentiment was a FDIC report with a negative outlook on US loan quality. German CPI fell to 0.0% on a y/y basis. Sterling broke comfortably back above 1.6000 the highest level since January as EUR/GBP selling and the UK mortgage industry showed signs of rebounding off November lows. The late equity pull back saw the 1.6000 handle being given up on profit taking. Further gains will require the continuing recovery of global financial system.
Technical Outlook:
EURO R1: 1.3980 S1: 1.3730
R2: 1.4020 S2: 1.3720
Chart pattern shows a bearish note for the day. With the trading range of 1.3750 -1.3950 levels for the day. Stochastic is seen trending down and market is trading below the moving average giving a bearish outlook and the view is also supported by momentum.
GBP R1: 1.6040 S1: 1. 5800
R2: 1.6050 S2: 1. 5760
Chart pattern is expected to be on a bearish note for the day and is expected to trade in the range of 1.5820-1.6020. Stochastic and momentum are seen trending down from the overbought area but the currency is trading on the moving average only break below it can confirm the trend.
No comments:
Post a Comment