10 April 2014, EUR/USD
The U.S. economy continues to recover – this is the main conclusion that can be drawn from the labor market data published last Friday. However, the situation outside the U.S. is not so nice – the inflationary pressures compression in the euro area is still in the investors’ agendas.
The support levels: 1.3772-1.3704 and the resistance levels: 1.3820-1.3892.
Daily chart has some negative signals: MACD shows a sell signal.
The 1.3820 testing is expected. The pair’s future dynamics will depend on this test results: the level breakdown will open the way to 1.3876-1.3900, the inability to break and consolidate above it will be an occasion for the profit taking with further decrease towards 1.3720.
Investors were unreasonably optimistic about the British currency on the eve and amid this we can expect the "bears"’ activity and the price decrease. The last meeting minutes publication will also support the U.S. currency. Generally, "cable" weakening can be expected on a daily result.
The support levels: 1.6725 - 1.6683 and the resistance levels: 1.6785 - 1.6822.
MACD indicates a growth.
The pair is consolidating in a very narrow range now. The falls continue to attract buying interest, which suggests a continued growth in the direction to the 68th figure. The 1.6675 loss will make the perspectives worse and will open the way to the 66th figure.
The Bank of Japan left the monetary-credit policy unchanged and cheered "bears" to open new short positions . However, the current levels look attractive for institutional investors to open long positions. A side trend development can be expected in the absence of interesting macroeconomic reports from Japan.
The support levels: 101.64 - 101.19 and the resistance levels: 102.82 - 103.43.
MACD points down, indicating the current downtrend
The pair falling from the 104th figure does not promise anything good for “bulls”. The current support loss will open the way to the support near 100.68. The dollar’s perspectives will be improved only after the return above 103.00.