European currencies keep the same levels
27 February 2014, EUR/USD
We should not expect a strong drop in prices now - the world's leading stock markets have shown a strong growth the other day, that indicates a renewed demand for risky assets and will provide some support for the single European currency. In general, during the day we can expect the development of a side trend.
The support level is 1.3698.
The situation remains the same: while the euro is traded above 1.3719-1.3685, the chances of testing the 38th figures remain. Fall below 1.3685 opens the way to 1.3618-1.3600. Rising dynamics of the pair do not inspire us with a confidence.
Japan did not please investors by publication of important macroeconomic statistics. The positive sentiment in the stock markets will support demand for the pair dollar/yen in the first half of the day.
The mark 102.73 is a strong resistance level and the pair USD/JPY does not enough power to take this barrier.
The positive data from the U.S. may make upside driver, because after the failure in January - any positive changes will be interpreted by market participants as a return to stability.
The support levels: 102.16 - 101.78 and the resistance levels: 102.73 - 103.37.
Overall, the picture is neutral at the moment, the range 102.16-102.83 will be broken in any direction. It might be level 101.59 testing or a resume to the uptrend.
British pound rose for the first time in the last six days versus the dollar after the Bank of England Governor Mark Carney said the Central Bank will support the economic recovery. Later Nouriel Roubini said that in his opinion the FED interest rate increase was expected in the middle of the next year, however, the Bank of England will not raise interest rates sooner than the FED.
The pair GBP/USD is trading above the strong support level 1.6640.
The upper downtrend channel boundary 1.6685 is a good resistance for a growing pound. A false retest of this level may provoke a downward correction. The first target is the level of support 1.6550.
Ruban SergeyAnalyst of «FreshForex» company
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