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The market is neutral waiting for new drivers

20 May 2014, EUR/USD

Euro

The market is neutral waiting for new drivers

We can expect the side trend development during the day, within the 1.37 - 1.38 range. The euro/dollar short-term trend is descending and most expedient to trade with the trend - to open short positions in the Euro growth now.

The euro/dollar falling continued. It broke through the support at 1.3720 and tested 1.3648 level, from which went up to 1.3732. The bounce came in the light of some oversold after achieving a strong level. Nevertheless, the EUR/USD is trading below the 100-day moving average.

The support levels are 1.3680- 1.3700, and the resistance levels are 1.3740 - 1.3760.

MACD is in negative territory.

Trading recommendations

Thus, the larger downward movement risks increased. The next "bears"’ target may be the support in the 36th figure area. The growth efforts should be used to open short positions, the rising above 1.3785-1.3800 force to review the trading strategy.

Pound

The market is neutral waiting for new drivers

The British Pound followed the euro on Monday to show the trading range. Investors take a break once again to weigh the "pros" and "cons". Can we now open long positions or better to wait for the positive macroeconomic statistics, which indicate that the "cable" high rate is not a hindrance to the Albion economic growth.

The support levels are 1.6750 - 1.6770, and the resistance levels are 1.6830 - 1.6850.

MACD is in neutral territory.

Trading recommendations

The GBP/USD dropped to 1.6731, breaking support at 1.6842-1.6822, which is punched earlier high. The next "bears" target may be the support around 1.6700-1.6670.

Yen

The market is neutral waiting for new drivers

The "bulls" for the USD/JPY could not break above 102.36, which resulted in a profit and USD/JPY drop to 101.72. Soon this support was broken, and behind it the support around 101.59, and the pair dropped to 101.31. The subsequent recovery attempts were limited by the 101.59 resistance.

The support levels: 101.20- 101.40, and the resistance levels: 101.70- 101.90.

The MACD indicator is in neutral territory.

Trading recommendations

The "bears" are trying to test the support at 101.22, a break of which will enhance the downward momentum, and they will be able to try 100.68 support strength. The growth above 101.59 will weaken the "bearish" pressure.

Ruban Sergey
Analyst of «FreshForex» company
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