Yellen chooses the moderate policy
18 February 2014, EUR/USD
Yesterday Eurozone and the USA did not delight investors with interesting reports. In general, during the day we can expect the development of a side trend. Today’s support levels are 1.3698-1.3655 and resistance levels: 1.3740-1.3810.
In General, particularly euro/dollar did not show a dynamic growth. The pair almost reached the level from where it was subjected to a sale at the end of January. We can assume that the current resistance can keep bulls from going up further. Should the pair grow above 1.3739 that would mean a speedy testing resistance around 1.3800-1.3818. The immediate support is at 1.3680-1.3660.
The main event for the USD/JPY is the Japan's GDP for the 4th quarter report. In recent months, market participants have been getting good reports from Japan - net exports, private consumption and employment have noticeably been increased. The positive background allows us to expect the data better than in the previous quarter, which is favorable for the national currency. During the day we expect the consolidation in the area 102.70. The support levels are 102.15 - 102.23 and the resistance levels are 102.90 - 103.16.
The pair is growing following the stock indices, rising to the resistance level 102.70. The break and consolidation above 102.70 will proof the return to a growth.
Sterling set a 33-month high after a government report showed that output in the construction industry in December 2013 was revised up to 0.2% against 0.3 %. The sterling resumed growth after the Bank of England revised to increase the economic growth forecast for 2014 to 3.4% from 2.8%. The central bank also said that the unemployment rate falls faster than it was expected and it is likely to reach 7% in the spring of current year. From a technical point of view, GBP/USD broke the upper limit 1.6250-1.6670. Should the pair grow it may reach 1.6740. The immediate support is at 1.6620/40 now.
The price is at 1.6750 - a good level for a day and 4 graphs. Closing price of the older graphics - this is a good level for the graphs of lower order. Starting from 1.6750, the next target level should be considered with two zeros - 1.6800.
Ruban SergeyAnalyst of «FreshForex» company
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