Euro shows a downtrend tendency
28 February 2014, EUR/USD
The euro/dollar traders should pay attention to the German labor market report. The other day we got a good report from GfK, which showed an increase in the consumer confidence leading economy of European currency bloc.
The support levels: 1.3655-1.3625 and the resistance levels: 1.3685-1.3740.
There are no objective reasons for active euro, so its fall may be limited by the level 1.3618 or by the support at 1.3548. The growth to 1.3700-1.3719 should be regarded as an opportunity to open the short positions.
The attack to 102.82 is still actual still the market does not have enough power to lift it up. There should not be interesting publications from Japan. We can expect a moderate upward movement. We single out the following levels for today: the support - 102.16 – 101.78 and the resistance 102.73 – 103.37.
MACD is going down confirming the current downtrend.
The pair still did not choose the direction to go. The pair is under sellers' pressure and is going down. The pair has no power to break 102.83 upwards. If the pair continues descending it will go to 101.60. Shall the USD/JPY rise it will grow to 102.50.
The pound was traded without any changes after the GDP publication in the fourth quarter. The release showed an increase of 0.7 % q/q and 2.7 % y/y, as the analysts expected.
The pair GBP/USD is trading below the 1.6700. The support is in the area of Monday's low at the 1.6580, below the near Wednesday’s time lows last at the $ 1.6500. The immediate resistance is at the 1.6720 (maximum of 21 February). The strong resistance level is in the range of Monday’s highs at the 1.6820.
The pair GBP/USD is trading near the strong support level 1.6640. The volumes near the support level 1.6640 and the uptrend line are low.
We will sell if the price breaks through the level 1.6640. This level break opens the way to the 1.6550.
Ruban SergeyAnalyst of «FreshForex» company
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