The EUR/USD is in a consolidation phase | 26 May 2014

Euro

The last trading day of the week turned out to be unfavorable for the euro. Friday trading began with the euro fall to the dollar. Greenback grew to euro at the expense of negative data on the German economy. However, the euro falling against the dollar was not so rapid. The euro is moderately decreasing. The single currency remains strong to its American rival, according to economists.

The France and German manufacturing PMI shows that it is hard conduct business for the leading Eurozone industrialists when the euro course is high. The primary market housing sales growth compared to the previous month can support the dollar.

The support levels are 1.3570- 1.3590, and the resistance levels are 1.3620 - 1.3650.

MACD is in negative territory.

Trading recommendations

The euro/dollar remains under pressure. The bulls made some unsuccessful attempts to get to the 37th figure. The bears returned from the level 1.3687. The EUR/USD gradually descends to the support in the area 1.3618, a break of which may open the way to 1.3545 and 1.3475.

Pound

The British currency exhausted the growth potential. We believe that the pair will form a side trend within the range 1.6856 - 1.6918 soon. The bears have a significant advantage over the bulls, and it means that the mood continues to be negative against the pound. Traders are awaiting for the sterling lag dynamics against the U.S. dollar.

We got the USA April housing market release last week. The secondary market sales showed growth after three months of decrease, signaling the trend change.

The support levels are 1.6810 - 1.6830, and the resistance levels are 1.6900 - 1.6920.

MACD is in positive territory.

Trading recommendations

The GBP/USD growth above the 69th figure stopped at 1.6917. As a result, the pair returned below 1.6900 and fell to 1.6851 support area. If the "bears" break through the support at 1.6840-1.6820 we should expect 1.6731 testing. The growth and ability to consolidate above the 69th figure will give "bulls" strength to test 1.7000.

Yen

Japan will not please investor’s important with macroeconomic reports today. The U.S. stock market investors re-configured to establish a historical record on the S&P5 index 00, which will support demand for the Japanese stock market, as well as a dollar/yen.

The support levels: 101.50- 101.70, and the resistance levels: 101.80- 102.00.

The MACD indicator is in neutral territory.

Trading recommendations

The dollar/yen continued its recovery; "bulls" were able to test the resistance level 101.85. The pair is again under pressure and fell to 101.65. If the "bulls" manage to hold above 101.59, the chances to break this level will grow.