10 June 2014, EUR/USD
The Eurozone economy data, published on Friday, did not affect the market because of information expectations from the United States, although the presented indicators results were mostly positive – the trade balance improved in Germany and France - the EU's largest economy balance recorded a growth in surplus, and the second one ended with the deficit reduction.
The trend for the single European currency is still falling, still we expect the side trend development the first part of the week.
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 descending.
The euro/dollar after the momentum growth forms a consolidation range. The pair may get to the level 1.3535 today. If the pair grows it can reach the level 1.4100. If it keeps falling it will direct to 1.3480.
The market liked the message that British inflation expectations in May left at the elevations above the Bank of England target level, 2.6%, as a deterrent factor was the foreign trade performance.
The report on the UK trade balance for April confirms the truth that the pound sterling high rate would have a negative impact on the UK economy in the medium term. Against this backdrop, investors will not rush to open the long positions and we can expect the side trend development during the day.
The support levels are 1.6770 - 1.6750, and the resistance levels are 1.6800 - 1.6830.
MACD histogram is growing thus giving a buy signal.
The pair continues to develop a consolidation. We not exclude the growth to the level 1.6877. Then, we believe the decrease will be continued. The main target is the level 1.6655. Then we expect the next growth wave development to the level 1.7000.
We expect the report on the Japan's GDP data outcome for the 1st quarter. The economists surveyed by Bloomberg expect the index decrease by 0.3%, still despite this - the final GDP growth rate was quite impressive in the first three months of this year. In the light of this, we should not expect the strong movement in the first half of the day. With the advent of the American market participants all investors' attention will be drawn to the trading dynamics in the United States stock markets.
The support levels: 120.30-102.40, and the resistance levels: 102.70 – 102.80.
The MACD is above the zero line and decreasing confirming the current southern movement.
The dollar/yen continues to form the decrease pulse structure. Today we consider an overlap to 102.00 level and return to the level 102.30. Then we expect the third down wave development with the local goal - at 99.30.