28 March 2014, EUR/USD
In the absence of an interesting reports from the Eurozone the lateral trends are expected. The States will publish Initial Jobless Claims, as well as the pending home sales. We do not expect a strong market reaction to these events, at the moment there is a balance between the “bulls” and the “bears” and we expect a range trading today.
The support levels: 1.3772 - 1.3740, and the resistance levels: 1.3810 - 1.3833.
MACD is in the negative zone, pointing down, indicating the current downtrend.
The “bears” may test support at 1.3700 in the short term. The next goal in this case will be the support near 1.3618. The growth and the ability to consolidate above 1.3880-1.3900 will mean that the “bulls” continue to control the situation.
The National Bureau of Statistics will publish the February retail trade report. The leading indicators show a mixed trend: the inflation in the UK reduced, which is negative for the retail sales. In January the number of an unemployed decreased and the incomes grew that can support the retail sector. One could expect a range trading, with small deviations that may encourage the “bulls” to begin to take profits on long positions.
The support level is 1.6600 and the resistance level is 1.6660.
MACD moved into a positive territory confirming the current upward price movement.
Theoretically, the pair may continue reducing to 1.6459. The loss of this level will open the way to the 63rd figure. The growth and the ability to consolidate above 1.6600 will weaken the “bearish” pressure.
The geopolitical tensions in the world is a negative factor for the dollar/yen growth. Nevertheless, the “bulls” are very serious and will try to redeem any reduction. Today we expect the entire block of an important macroeconomic statistics from Japan, that will deter the investors from an active trading on Friday.
The support level is 101.90 and the resistance level is: 102.30.
MACD is pointing down, the histogram entered into a negative area. Everything indicates on a downward movement.
The pair is directed to 101.90, growing above 102.68 may lead to 103.00-103.43 testing.