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The EUR/USD keeps trading in a narrow channel

22 April 2014, EUR/USD

Euro

The EUR/USD keeps trading in a narrow channel

The EUR/USD plans to continue a downward trend.

At this point, the trading continues between two strong levels: 1.3840 - 1.3760. The price is located almost in the middle of those levels while initially it strayed from the resistance 1.3840, above which it failed to consolidate after a short break.

The support levels are 1.3720 - 1.3740, and the resistance levels are 1.3810 -1.3830.

MACD is a zero area, which indicates the current corrective movement.

Trading Recommendations

The EUR/USD continues the consolidation after the channel breakdown. This scenario assumes the market continuation to decrease to the level 1.3750 break.

Alternative Trading

The resistance 1.3840 break will lead up to a reversal downward trend. The potential target for the growth should be the level 1.3900.

Pound

The EUR/USD keeps trading in a narrow channel

From a technical point of view, the GBP/USD rebounded from 1.6770 and traded slightly higher. The nearest resistance is at 1.6880 and 1.6835/40 area.

The support levels are 1.6700 - 1.6720, the resistance levels are 1.6780 - 1.6800.

MACD is pointing down, indicating the current corrective movement.

Trading Recommendations

The GBP/USD is stuck in a medium term uptrend.

The bounce was on decreasing volumes from the resistance level 1.6835. As this correction is not supported by the volumes, the price is likely to test the resistance level 1.6835 early in the week.

Alternative Trading

The support level and the rising trend line 1.6755 breakdown lead to the price correction reduction continuation. The nearest goal will be the support level 1.6675.

Yen

The EUR/USD keeps trading in a narrow channel

We can expect some activity from Japanese investors in Asian trading session, but it should be noted, that given the low trading volume - volatility spike should not be expected.

The support levels: 102.16 - 101.72, and the resistance levels: 102.89 - 103.33.

MACD is pointing up, indicating the current uptrend.

Trading Recommendations

The Dollar/Yen continues to develop the growth structure to the level 103.00 break. After this level break we shall consider 100.00 break as the next target.

Alternative Trading

As a fallback there should be considered the level 102.00. A successful consolidation below this level will continue the southern movement.

Ruban Sergey
Analyst of «FreshForex» company
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