11 March 2014, EUR/USD
EU and the USA will not publish interesting macroeconomic reports today. Geopolitical risks went into the shade now, still the situation remains unsolved - Russia threatens to cut off gas supplies to Ukraine over debts, which in its turn can give a new turn in the confrontation between the two countries.
Another leading indicator, - the spread enlarging between 10-year U.S. and German bonds, is pointing to a possible dollar growth.
The support levels: 1.3810-1.3772 and the resistance levels: 1.3892-1.3968.
The bullish 1.3910 breakout may lead to a resumption of the uptrend to 1.4310. But the probability of this is lower than the rollback down, which will allow the pair to stay in the channel for a while. The first downtrend target is 1.3810.
In the absence of macroeconomic releases from the UK and U.S. investors take a pause; the trading activity is low. A medium-term trend is directed upwards, but for the continued growth we need serious drivers. In general, we can expect a side movement during the day.
The support levels: 1.6660 - 1.6600 and the resistance levels: 1.6730 - 1.6757.
The resistance 1.6750/30 knocked off bulls' attempts to break down this barrier and the price goes down again to the consolidation range that is at 1.6690/80 now.
The resistance 1.6750/30 break will confirm an upward movement to 1.6800 and further to 1.6850/80. Still if the pair gets below 1.6620/10 that will sign about the downtrend beginning.
The yen was growing in the first month of the year, the official reserves grew to $ 10.3 billion as well. The positive leading indicators allow us to calculate the reduction of a negative payment balance. The economic growth revised figures are expected to show a decline to 0.9 %, which will constrain the strengthening of the Japanese yen.
The support levels: 102.82 - 102.16 and the resistance levels: 103.37 - 103.91.
A small correction to the support level 102.70 is possible. Strong U.S. news will push USD/JPY to the resistance 105. The pair's outlook is positive, and after a brief consolidation we expect an uptrend to test the local maximum 105.40.
Do you have any suggestions to make our website better? Have you noticed an error on the site? Tell us