The Euro keeps going up
20 February 2014, EUR/USD
The lack of interesting economic releases from the Euro zone will make investors pay attention to American statistics.
Weak employment in the first month of the year is the main negative factor for the report in terms of building permits issued and the number of Housing Starts. We can expect the release of data on the level of the median forecast or a little worse, which will put pressure on the U.S. currency.
Today we single out the following levels: support levels: 1.3740-1.3698 and the resistance levels: 1.3810-1.3892.
Price looks overbought, we expect a rolling back down towards 1.3700.
There won’t be important macroeconomic statistics from Japan today. We believe investors will focus their attention on the futures Nikkei 225 trading.
There is a moderately positive mood at leading world stock exchanges markets. We can expect a price growth that will provide some support for the pair USD/JPY after Janet Yellen’s speech.
We single out the following levels. The support levels: 102.16 - 101.78 and the resistance levels: 102.60 - 103.37.
The growth did not receive a support yesterday. Instead, the pair gradually decreased to the support 102.13. The loss of this support will endanger the more important level – 101.59. A drop below would indicate that a downward correction is still in force. When the pair grows up above 102.74 bulls will return a control of the situation.
The pound is traded near daily lows after the publication of inflation data in Britain. The British currency looks overbought. The chances that the pair will continue a downward correction before the labor market statistics publication are high.
The support is around 1.6660 lows. The resistance is at around 1.6888.
The pair GBP/USD continues its correction. The decrease volumes are declining. The corrective pullback may come to an end. The upward trend is still relevant. The growth target is 1.6640.
Ruban SergeyAnalyst of «FreshForex» company
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