Euro with help from its crosses especially the EUR/JPY the EURO as stated above made a fresh leg higher into the 1.42's running out of steam just before 14250 but holding the level for the rest of the day. June German PPI at -0.1% vs. +0.5% confirmed that Producer Prices are falling at the fastest rate in 40 years as cheaper Oil and Higher Unemployment reduces demand. Sterling found strength in the improved risk appetite see in the market with US futures trading higher in Asia and 1.6500 broken on the topside. GBP/JPY provided a lot of support but so did EUR/GBP selling which was not an easy feat with the Euro also making major moves. Looking ahead PSNCR in June forecast at 20Bn vs. 18.78Bn previously.
Technical Outlook:
EURO chart pattern shows the possibility of profit booking to 1.4150 levels and break below that should halt the bullish note and push it to 1.4050 levels. If the currency holds above the support level then bullish note holds good and will be extended to 1.4330 levels in near term. Stochastic and momentum are still supporting the bullish note.
GBP charts remains bullish in near term , current bearishness should be limited to 1.6440 levels but break below will trigger bearish outlook and extend to 1.6380 levels . Stochastic is seen trending up supported by parabolic and the currency is also trading on the moving average Pointing towards the 1.6650 levels.
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