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The EUR/USD correction is possible

10 March 2014, EUR/USD

Euro

The EUR/USD correction is possible

The main event of last Friday was the labor market report publication. The leading indicators: ADP, ISM employment figures and 4 week average for claims for unemployment benefits - indicate on a worse Non-Farm release which will put pressure on the U.S. currency. In general, in the end of the day, the development of a side trend can be expected.

The support levels: 1.3810-1.3772 and the resistance levels: 1.3892-1.3968.

MACD is pointing up, indicating the current uptrend.

Trading recommendations

Euro bounced off the support level 1.3720 and easily overcame obstacles in its path, rose to 1.3910. The pair may test the highs at 1.3950, but hardly find a reason to buy at current levels, so it's not the fact that the pair will continue to grow. The fall below 1.3720 would weaken the bullish power.

Pound

The EUR/USD correction is possible

The British currency still looks attractive to investors. Today the pound won't please the market participants with interesting macroeconomic releases - on this background, the "bulls" and "bears" will closely study the report on the U.S. labor market. The release worse than the forecast can be expected - which will support a demand for "cable". Nevertheless, the resistance level is 1.6815 – it is strong enough and it is possible that investors will close long positions here. In general, the development of a side trend during the day can be expected.

The support levels: 1.6725 - 1.6672 and the resistance levels: 1.6822 – 1.6890.

MACD is pointing upwards indicating the current upward price movement now.

Trading recommendations

Inability to overcome the resistance in the 68th figures may lead to profit taking by bulls. The fall below 1.6700 opens the way to the 66th figure. The falling below 1.6600-1.6583 may lead to a larger downward correction.

Yen

The EUR/USD correction is possible

The growth at the world's leading stock markets supports the demand for the pair dollar/yen. Today investors may focus their attention on the publication of data on transatlantic labor market, that may encourage the "bulls" to start take profit on long positions. Besides, the correction in the USD / JPY pair is already overdue. In general, the development of a side during the day can be expected.

The support levels: 102.82 - 102.16 and the resistance levels: 103.37 – 103.91.

MACD is indicating now the current upward price movement now.

Trading recommendations

The pair has reached mark 103.80, but it was not able to rise above it yet, which may indicate a false level break. If the pair gets below 102.83 the bullish power will weaken, and the loss of support in the mark of 102.30 will return the pair into a downward direction.

Ruban Sergey
Analyst of «FreshForex» company
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