05 March 2014, EUR/USD
In the absence of interesting reports from the Euro-zone and the U.S., investors will closely monitor the situation in Ukraine. If politicians both in Ukraine and in Russia exacerbate the current conflict - we will see the U.S. dollar strengthening. The pair will be influenced by the cross-rate EUR/GBP as well. Amid the positive UK construction PMI report the pair can decrease. In general, we can expect a moderately downward trend.
The support levels: 1.3685-1.3655 and the resistance levels: 1.3740-1.3772.
The pair reached the support 1.3720 being under pressure. The demand for the euro remains here, so the EUR/USD was able to rebound to 1.3767.
The current support level loss will lead to 1.3643 testing.
Markit Economics will publish the UK construction PMI. The indicator can surprise, the British Bankers' Association reported about the mortgage lending growth in January the last week. The indicator set multi-year highs. In the light of this it is possible to expect construction sector PMI growth which will support the demand for the British currency. In general, we can expect a flat today.
The support levels: 1.6623 - 1.6582 and the resistance levels: 1.6672 - 1.6725.
There was not expected bulls’ attack to the 68th figure yesterday. The return above 1.6700 would lead to the 1.6750 testing, 1.6640 loss would lead to 1.6600 testing. While the pair is trading above 1.6640-1.6600, the chances to reach the 68th figures remain.
The situation around Ukraine remains in the focus of the world's leading stock markets that will perform as a negative factor for the quotations growth. Japan and the United States did not please investors with interesting reports, as a result the attention will be diverted to the stock market. The USD/ JPY long-term trend is ascendant - the current levels are very interesting for buying in long-term that will support some demand for the U.S. dollar versus the Japanese yen. In general, we can expect a side trend development during the day.
The support levels: 101.38 - 100.75 and the resistance levels: 101.66 - 102.16.
The dollar overcame the resistance 101.60 and rose to 101.95. We cannot say about the uptrend resumption until the pair gets above 102.83, still the return above 101.59 weakens bearish movement. If the pair falls it will go to 100.68.