Leading economies of the currency have already submitted reports on industrial production, only France has published a negative report. The industrial sector growth in January investors may take as the Mario Draghi’s right course, who said that there was no need for additional quantitative easing at the last meeting. In the light of this we can expect a moderate demand for the pair.
Strong demand will hinder geopolitical tensions, which again returns. If the Crimea becomes independent that may push two countries to a new conflict.
The support level: 1.3810-1.3772 and the resistance level: 1.3892-1.3914.
MACD is going down, indicating the current correction movement.
The technical picture remains unchanged. The pair keeps growing. The pair broke 1.3910 up and is heading towards 1.3980. A consolidation above 1.3900 will open the way to 1.4050.
The United Kingdom economy shows a recovery that was confirmed by the Bank of England Governor Mark Carney. He said that they expect yield data slightly better median predictions that will support some demand for the British currency.
We should not forget about the dynamics cross-rate EUR/GBP - this currency approached the strong resistance level 0.8349, where we can expect "bears" activity, which in its turn will support the "cable" versus American dollar.
The support level: 1.6623 - 1.6582 and the resistance level: 1.6672 - 1.6725.
MACD is turned up, the indicator gives signals the current upward price movement.
The pair bounced up towards 1.6660. The level is broken and the growth continues. Attempts to increase the 67th figure should be seen as an opportunity to open short positions at the best price. If the pair grows higher that will become a real menace to the resistance at 1.6800.
Japan will publish the BSI business conditions for large manufacturers report. Economists expect the rate growth comparing to the 4th quarter. Last GDP report indicates the economic growth slowing in Japan. Japanese regulator said the same about the problems of exporters. It is difficult to expect a good report on the indicator of sentiment among industrial manufacturers.
The support level: 102.82 - 102.16 and the resistance level: 103.37 - 103.91.
MACD is pointing down, indicating the current downtrend.
Bears tested previously broken level 102.70 that acts as a support now. Its loss will open the way to the support at 102.20. If the level 102.70 holds bears, the bulls will be able to retest 103.80.