28 May 2014, EUR/USD
The ECB head once again confirmed that the European monetary regulator was ready to go further to stimulate the economy if necessary in the near future.
The Euro slightly strengthened after the German consumer confidence release which is the fourth consecutive month remains at the highest level over seven years - and not decreased, in contrast to earlier released ZEW and IFO. According to GfK, the leading market research organization, outpacing the German consumer confidence index in June remained at 8.5 n, as it was expected.
The support levels are 1.3590- 1.3600, and the resistance levels are 1.3650 - 1.3670.
MACD is in negative territory. The histogram is growing.
The recovery to 1.3700-1.3720 is possible. We can sell from this level. The growth above this level will weaken the "bearish» pressure and break through will cause a fall to 1.3645.
We expect the pair to continue the downtrend movement. We shall pay attention the cross-rate EUR/GBP behavior – the cross-course is consolidating now after updating the minimum values over the last 15 months. This factor will have moderate support in the British currency against the U.S. dollar.
The support levels are 1.6770 - 1.6750, and the resistance levels are 1.6830 - 1.6850.
MACD histogram is lowering.
After testing the 1.6852 level the pair stayed at 1.6842 and in the Asian session jumped to 1.6868. The growth to the 69th figures direction should be seen as an opportunity to open short positions at the best price. The confident breakout of this level will return "bulls" confidence, the support loss at 1.6840-1.6820 will strengthen a downward momentum.
The Yen barely reacted to the Bank of Japan last meeting minutes. The minutes did not bring any surprise. Kikuo Iwata said that the Bank of Japan was becoming more positive to the current tapering program and steadily moving towards the target inflation rate 2%.
The global demand action is steady and we can expect "bulls" activity.
The support levels: 102.00- 102.20, and the resistance levels: 103.30- 102.50.
The MACD indicator is growing.
The "Bulls" are trying to consolidate above the broken resistance downline, still to continue to grow they need to overcome the resistance at 102.00-102.36.