Euro broke above 1.4200 during the US session after bouts of USD strength earlier in the day. Heavy EUR/JPY buying helped to support the major higher. Looking ahead, April Industrial Production is forecast at -0.4% vs. -2% previously.Sterling rallied with the higher stocks/Oil theme. The pair managed to break above 1.6600 before consolidating for the rest of the day.
Technical Outlook:
EURO chart pattern is expected to be on a bearish note for the day. Currency is expected to trade in the range of 1.3980-1.4170 levels. Momentum is seen trending down and Parabolic is holding on the bear note and Euro is trading on the moving average only break on either sides will confirm the outlook..Good support is seen at 1.3950 break of which will see 1.3880 and key resistance is seen at1.4220 levels.
GBP chart pattern shows sideways to bearish note and trade in the range of 1.6430-1.6650 levels for the day. Momentum is seen trending down and the Relative strength index is also trending down hinting towards upward correction to 1.6680 .Key support for the currency is seen at 1.6350 and 1.6280 levels. Caution is given by parabolic as is is pointing towards bull note.
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