Euro found support from Asian selling at 1.4520 and bounced hard into the US session setting fresh year highs above 1.4650. Strong US stocks and stops helped provide momentum. The Rally stalled at highs but found support in the low 1.4600 area to end well supported at the close. July Industrial production -0.3% vs. -0.2% forecast. Looking ahead, September German ZEW survey forecast at 60 vs. 56 previously.On technical side EURUSD is expected to have a tight trading range of 1.4530-1.4640 levels .Good support is seen at 1.4500 . Key resistance is seen at 1.4660 levels. Stochastic and momentum is seen trending down supporting the downward correction.
Sterling led the market on the way down yesterday with the market falling heavily on risk aversion and traders caught long after the rally on Thursday and Friday last week. GBP/JPY bounced off the 150 Yen level and Cable bounced off the 1.6520 supports but the recovery lagged the Euro and EUR/GBP ended the day above 0.88. Looking ahead, August CPI is forecast at 0.3% vs. 0.0% previously. Sterling charts are expected to give bullish consolidation and trade in the range of 1.6530-1.6680 levels. Relative strength Index and momentum are seen trending down giving bearish outlook . Good support is seen at 1.6510 and key resistance is seen at 1.6740 .
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