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The pound may grow soon

17 June 2014, EUR/USD


The pound may grow soon

We are waiting for the final May consumer price inflation in the euro area. The region major economies published the inflation reports last week still the changes for the better have not been shown anywhere. In this context, we can expect the release on the median forecast level that will not cause a strong reaction on the market participants side.

The euro/dollar fell last week, breaking the support at 1.3618 and 1.3535. However, the "bears" could not to get through the 35th figure and the last week low, as the euro is trying to get back and consolidate above the previously punched 1.3535 level.

The support levels are 1.3535- 1.3560, and the resistance levels are 1.3590- 1.3600.

MACD is in negative territory. The histogram is growing.

Trading recommendations

In general, the pair is not resold, and given the fact that the euro is used as a funding currency, it may continue to decrease to 1.3480. The growth efforts in the 36th figure direction should be used to open short positions.


The pound may grow soon

The last week was pretty successful for the British pound. In the tandem with the U.S. dollar it found the support in the area 1.6740, after which it gradually rose to the resistance around 1.6859. The pair flew to 1.6992 after the Bank of England Mark Carney’s comments and easily broke through the resistance on the 69th figure. Since the beginning of the week the pound tested 1.7010.

The support levels are 1.6900 - 1.6920, the resistance levels are 1.6960 - 1.6975.

MACD histogram is growing.

Trading recommendations

The week closing near its current high is a positive factor for the pound, but the "bulls" still need to consolidate above the psychological level 1.7000.


The pound may grow soon

The BoJ remains faithful to itself - the tax burden has restrained the negative impact on the economy and in the light of this, it is not necessary to increase the incentives. Nevertheless, the manufacturing sector report which we received last week showed that not everything is nice in Japan. The investors and traders will focus on the Japan and the United States stock market trading dynamics. The "Bulls" are coming back to the market which will give a moderate support for the U.S. currency during the day.

The support levels: 101.70-101.80, the resistance levels: 102.00 – 102.10.

The MACD is below the zero line and decreasing confirming the current southern movement.

Trading recommendations

The growth towards 102.30 attracts interest in sales that keep the level 101.70 high breaking risks. In this case we should expect the support 101.22 testing. The growth above 102.30 will weaken the "bearish" pressure.

Ruban Sergey
Analyst of «FreshForex» company
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