20 June 2014, EUR/USD
The Fed disappointed the "bulls", the downtrend is still in force and has not been canceled. In the absence of important macroeconomic statistics publication from the Eurozone and the U.S. – the investors will focus on the ECB President Mario Draghi speech. Two weeks have passed since the monetary regulator last meeting, during which we received a negative macroeconomic statistics again. In the light of this we can expect the "verbal intervention" aimed at the euro rate reducing.
The support levels are 1.3570- 1.3590, and the resistance levels are 1.3650 - 1.3670.
MACD is in positive territory. The histogram is growing.
After the current resistance breakthrough the "bulls" may test the resistance at 1.3650/70.
In light of compression inflationary pressures and the UK earnings level decrease the retail sales report was not a pleasant surprise for the traders. In this context, we can expect a further decrease against its U.S. counterpart where the nearest strong support will be the mark 1.6920.
The support levels are 1.6990 - 1.7010, and the resistance levels are 1.7040 - 1.7060.
MACD is in positive territory. The histogram shows the bulls’ sentiment.
The "bulls" are trying to break the level 1.7040. If they manage to consolidate above it they will test 1.7080 and if they fail the pair will return to the downward correction path.
The stock market reacted to the Federal Reserve head statement to maintain the low interest rates for a long time after the QE-3 program strong growth completion in price. The American market has once again demonstrated the "bullish" rally - the futures S&P 500 set a new historic high.
The dollar/yen rose above 102.20, but was not able to continue the growth and fell to 101.88. Today, we expect the decrease to be continued.
The support levels: 101.50- 101.70, and the resistance levels: 101.80- 102.00.
The MACD indicator is in neutral territory.
The dollar failed to consolidate above the broken resistance around 102.20 102.00.-that is a negative factor for the greenback. The support 101.59 break will lead to testing the next support at 101.22.