After the release of the set of fundamentals from the Euro Zone and the UK, we see that markets are currently facing different critical levels. The data released failed to help define a trend for the markets as it seemed to be giving mixed signals, where all we can do now is wait...
The 16 nation currency continued to decline as stated earlier, to record an intraday low of 1.3982; yet failing to close below the 1.40 mark, sending the pair back to the upside. We currently see trading at the 1.4005 levels, as another attempt to breach the 1.40 mark being witnessed, where a successful breakout will take the pair to 1.3920 and 1.3885, at the very least. Although technical indicators are supporting the downtrend on different time frames, we believe the pair is to correct slightly to the upside on the intraday basis to retest today's high at 1.4070 and perhaps extend to 1.4120, before gathering enough bearish momentum to reverse to the downside. This decline remains as far as 1.4150 and 1.4180 remain intact.
With regards to the Cable, the pair respected our overview to correct to 1.6430 (recording a low of 1.6427), before rebounding back to the upside to record a high of 1.6545 and near the key resistance of the contracting triangle, which has shifted today to 1.6570. Technical indicators still point to the downside for the day, and will be confirmed by a close below the 38.2% correction at 1.6430; to open the way towards 1.6325 and the key support for the triangle at 1.6260. Our overview remains to the downside as far as 1.6660 remains intact, to breach the support of the triangle and target 1.59 at the very least.
The Dollar versus Yen pair is currently retesting the broken level at 95.55, since it failed to maintain levels above it; recording a high so far, of 95.58. The strength of this level may halt further upside movements to 96.00 - 96.10, in an attempt to relieve momentum indicators; resulting in a reverse to the downside to complete the short and medium term declines towards 94.30 and 92.50, respectively. This bearish scenario is protected by the 97.25 level on the short term and 99.60 on the medium terms.