Euro tried to rally as the Nikkei surged towards 10000. Sluggish US stocks and a Financial Times article on European banks hurt sentiment and the pair slipped below 1.4000. Sterling rallied aggressively in European session on better than expected manufacturing and Industrial production figures in April. April Trade Balance at -7.0Bn vs. -6.4Bn forecast.
Technical Outlook:
EURO chart pattern is expected to be on a bullish note for the day. Currency is expected to trade in the range of 1.3920-1.4130 levels. Momentum is seen trending down and Parabolic is holding on the bear note but stochastic is pointing up and Euro is trading between the fast and slow moving average giving a sideways outlook .Good support is seen at 1.3880 and key resistance is seen at1.4180 levels .
GBP chart pattern is expected to form a bullish pattern and trade in the range of 1.6320-1.6520 levels for the day. Momentum is seen trending up and the Relative strength index is also trending up hinting towards upward correction to 1.6550 .Key support for the currency is seen at 1.6280 levels. Caution is given by parabolic as it is holding on to its bear note.
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