Euro was very soft against the USD as the market hammered the Euro on the subject of reserve status. As the second biggest currency any talk of moves away from the Dollar standard will help the single currency advance. Russia and Japan both talked up the USD .Looking ahead for Q1 Employment change Q/Q previously at -0.3%. Sterling weakened from the 1.6500 level as GBP/JPY ran out of steam. The Blackrock $6bn purchase of Barclay’s global investment unit has been supporting the pound in recent trading sessions. EUR/GBP tested 0.8500 but couldn’t press further.
Technical View:
EURO chart pattern is expected to be on a bearish note for the day. Currency is expected to trade in the range of 1.3860-1.4070 levels. Momentum is seen trending down and Parabolic is holding on the bear note and Euro is trading below the moving average confirming the outlook..Good support is seen at 1.3820 and key resistance is seen at1.4120 levels.
GBP chart pattern shows a bearish note and trade in the range of 1.6230-1.6480 levels for the day. Momentum is seen trending down and the Relative strength index is also trending down hinting towards downward correction to 1.6180 .Key resistance for the currency is seen at 1.6520 levels. Caution is given by parabolic as is is pointing towards bull note.
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