The single currency was under a technical pressure after breaking 1.341 versus the greenback the pair is trading currently at 1.325. the greenback has been boosted by the decline in the equity market by the weekend which can continue with the opening of the US stock market after 3 weeks of gains spurred by the market optimism of the recent stimulations plans which are expected to continue and the market is waiting this week for further stimulation plans for the car markers in US which can help the equity market to keep its recent gains. The market has bought these plans and believed in its effects on the financial market and after this recent rally in the US equity market there can be a believe that the worst of the equity market because of the credit crisis is behind and the bottom has been formed at this month low on the 9th of this month when the Dow reached 6500. By God's Will, it can be hard to see one bottom of this massive decline and there can be a higher bottom and this is expected to be above 7250 initially and on the failing of this then 7000 and after that 6500 and on the breaking of this point there can be further stop loss triggering to continue the downward trend. In this same time, the single currency could not find the support again at 1.341after the trend line which was extended from 1.2616 to 1.2986 breaking at 1.3463 and the next support is expected to be at 1.31.

God Willing, We have very important data to be watched this week as the US ISM manufacturing index and non-manufacturing index of March and the US labor report of this same month and from EU and UK we have March PMI data of the service sector and the manufacturing sector too. Further weak data can effect negatively on the current optimistic wave. 

Best wishes

FX Consultant

Walid Salah El Din

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