Euro broke through resistance at 1.4250 after the Canadian Interest Rate Decision but profit taking and mixed comments from Bernanke prompted fresh risk aversion matched by a fall in stocks at the US open to test support at 1.4160. A late US rally help the pair reclaim 1.4200 but upside momentum could start to wane if 1.4160 is broken on the downside today. Looking ahead, May Industrial Orders 1.9% vs. -1% previously. . Sterling was pressured by the PSNCR in June at 13.0B better than expected but still the worst on record for June and the market worried about UK finances sent the GBP lower. EUR/GBP jumped higher and GBP/JPY slumped. BoE Bean's comments about not wanting a strong recovery of the sterling also weighed. Looking ahead, July MPC minutes released and July CBI Distributive Trades forecast at -45 vs. -51 previously.
Technical outlook:
EURO chart pattern shows bearishness 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 1.4280 and 1.4330 levels in near term. Parabolic and momentum are still supporting the bullish note. Relative strength index is also seen flat hinting towards a range bound move.
EURO chart pattern shows bearishness 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 1.4280 and 1.4330 levels in near term. Parabolic and momentum are still supporting the bullish note. Relative strength index is also seen flat hinting towards a range bound move.
GBP charts remains bearish but the current bearishness should be limited to 1.6320 levels but break below will trigger bearish outlook and extend to 1.6260 levels . Stochastic and momentum are seen trending down supported by parabolic pointing towards bearish note. Resistance holds at 1.6600 levels.
No comments:
Post a Comment