Euro and Pound shed some of their gains-Jun 09.

Euro sank to fresh week lows after Ireland was downgraded and Latvia was put on negative watch due to a currency devaluation risk. The bounce off lows was limited as the EUR/GBP came under pressure. German Industrial Orders were flat in April. Looking ahead, German April Industrial Output is forecast at 0.1% vs. 0.0% previously. Japanese Yen came under fairly heavy profit taking in the Asian morning before more USD buying emerge in Europe and help to keep EUR/JPY in a tight range. Crosses were mostly negative as their respective majors fell but most are still seeing the move lower as corrective. Sterling continued to be sold as another day of political uncertainty began in the UK. Support at 1.5800 held firm and support from EUR/GBP selling helped cable get back above 1.6000. Supporting the rebound was improvement in banking stocks and talks of Barclays selling its Investment Unit to Blackrock. BRC Retail Sales at -0.8% vs. 4.6% previously.

Tech outlook:
EURO chart pattern is expected to be on a bearish note for the day. Currency is expected to trade in the range of 1.3750-1.3960 levels. Daily Momentum and stochastic are seen trending down and Euro is trading below the moving average and Parabolic is holding its bearish outlook. Good support is seen at 1.3720 break of which will see 1.3380 and key resistance is seen at1.4020 levels .

GBP chart pattern is expected to form a bearish pattern and trade in the range of 1.5790-1.6100 levels for the day. Momentum is seen trending down and the Relative strength index is also trending down hinting towards the possibility of downside correction to 1.5750 .Key resistance for the currency is seen at 1.6150 levels.