Euro fell heavily from Thursday’s high as the market absorbed reports that Eastern European countries would be looking to expand IMF funding to help them through the financial crisis. Support from central banks help lift the Euro off lows under 1.3900 and end on a neutral footing. Looking ahead, ECB President Trichet Speaks today. Sterling was volatile but ended well off highs with GBP/JPY selling dragging Cable lower. Sentiment is mixed with the short covering seen after the BoE providing fresh selling opportunities but 1.6000 forming as a serious support zone. EUR/GBP continues to edge higher as risk aversion weighs on the pound more than the Euro.
Technical outlook:
EURO chart pattern remains bearish for the day. Currency continued it's bearish momentum .On daily chart currency is expected to test 1.3840 levels and have its resistance at 1.4050 levels. Currency is trading below the moving averages and momentum and stochastic are also trending down supporting the bearish outlook.
GBP daily chart shows bearishness and it is expected to test the support level of 1.6050 break of which will see 15980 levels .Key resistance for the currency is seen at 1.6260 levels .Momentum and stochastic indicators are seen trending down and parabolic is also supporting the bearish outlook.
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