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Euro keeps strenghtening its positions

03 March 2014, EUR/USD


Euro keeps strenghtening its positions

The euro responded to the news that has been limited its growth for several weeks – the threat that the European Central Bank may cut rate at the meeting of March 6, seems to be over.

The inflation data provoked the euro rapid strengthening. The Inflation report helped the pair to overcome the resistance 1.3757, and to absorb large offers near 1.3770. As a result, the pair tested the maximum at 1.3812 and stopped above 1.3800.

The support levels: 1.3685-1.3655 and the resistance levels: 1.3800-1.3820.

Trading recommendations

The resistance at the level 1.3800 could stop the growth, but the declines to the 1.3700 continue to attract the buying interest. The trading range breaking showed the further pair direction.


Euro keeps strenghtening its positions

The economic slowdown in the last quarter indicates to an inflation contraction pressures in the first month of the year. The weak report on orders for machinery and equipment in December does not allow counting on the industrial production positive data.

We expect an increased volatility for the USD/JPY. The American statistics will not support the "bulls" and we expect a moderately rising trend developing throughout the day.

The support levels: 102.16 - 101.78 and the resistance levels: 102.73 - 103.37.

Trading recommendations

The Bears could test the support at 101.60 which still holds back their onslaught. This level break will open the way to the support at 101.00. The growth above 102.83 will mean a resumption of the uptrend.


Euro keeps strenghtening its positions

T pound was traded under the external news influence. The pair strengthened its positions vs the dollar. The GBP/USD was under pressure by the geopolitical events, and then grew on weak output data on the U.S. economy.

From a technical point of view, the pair is in a trading range. The upper limit is at 1.6727. The GBP/USD is above 1.6700, the support is at 1.6670.

Trading recommendations

The bulls have no power to continue the growth. We expect the pair to bounce down to 1.6660.

Ruban Sergey
Analyst of «FreshForex» company
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