The Euro German IFO was strong as expected and helped the Euro touch day highs at 1.4350 before sellers returned and slammed the pair lower on stalling stocks and fresh USD strength. Positive sentiment is failing to produce the desired results for the bulls who are becoming frustrated with the lack of progress. Looking ahead, German GFK forecast at 3.7 vs. 3.5 previously.On technical side EURUSD are seen on a bearish move is expected to trade in the range of 1.4190 -1.4320 levels . Stochastic and momentum indicators are bearish and currency is also trading below the moving average confirming the bear trend. Key resistance seen at 1.4350 levels .Good support is seen at 1.4150.
The Sterling continued the slump on the above China news breaking support at 1.6300 to test 6 week lows below 1.6200. GBP/JPY was weak and EUR/GBP tested 0.8800. The outlook is beginning to turn very bearish as momentum develops on the downside. Looking ahead, August CBI distributive trades forecast at -13 vs. -15 previously. Sterling charts are giving downward correction and the currency is expected to have a trading range of 1.6160-1.6320. Stochastic and momentum are seen trending down giving bearish outlook . Good support is seen at 1.6150 and key resistance is seen at 1.6350.Parabolic is also seen supporting the bearish outlook.
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