Euro traded above 1.4100 as the Euro hit highs in Early Europe before falling as the USD was supported by a good Treasury auction and secondly by the FOMC comments excluding deflation talk. Stocks and Oil continue to underpin the Euro going forward. Looking ahead, April Industrial Orders are forecast at 0.0% vs. -0.8% previously. Sterling was well supported by investors but USD strength won in the end pushing the pair from 1.6600 to 1.6400 late in the US session. The lack of expansion in US Treasury Buying from the FED supported the dollar post FOMC. EUR/GBP slipped back under 0.8500.
Technical Outlook:
EURO chart pattern shows a neutral trend. Trading range for the day is expected to be between 1.3880-1.4080 levels for the day. With good support seen at 1.3850 and key resistance is seen at 1.4150.Stochastic is trending up but crossovers will confirm the trend. Momentum indicators are pointing down and is expected to test the support level before resuming the bullishness.
GBP chart pattern points a sideways to bullish move. Trading range for the day is expected to be between 1.6350-1.6530 levels for the day. Stochastic and the Relative strength index are seen trending up but momentum is seen trending down hinting that there will be a potential downward correction to 1.6350 levels .Currency is trading little above the moving average giving bullish crossover.
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