27 June 2014, EUR/USD
The single European currency is being consolidated near the 36 figure, despite all bears’ attempts to push the price down. The lack of important news and low volatility can push the pair to 1.3650. When the American traders come all investors' attention will be focused on the personal consumption expenditures (PCI). Most leading indicators showed a growth in May and if we get data better than median forecasts today – the demand for the U.S. dollar may be strengthened.
The negative outlook remains. In the short term, "bears" may test the support of 1.3545 the break of which will lead to the decrease to 1.3475.
We should not expect pleasant surprises from the Bank of England. On Tuesday, the British Parliament Mark Carney made public all milestones in the near future, and today, we should not expect a strong market reaction to this event. If we get the positive data from the U.S. personal consumption expenditure British currency will test the mark of 1.6950.
We do not expect another price decrease as the expectations of toughening monetary - credit policy by the British monetary regulator will support the demand for the pair.
Inability to return and consolidate above 1.7000 supports the development of a downward correction. In the short term, "bears" may test the support of 1.6903.
The pair shows a side trend development. The pair has no reason to leave the range 101.60 - 102.33. In the absence of interesting reports traders as usually track the Japan and the United States stock market dynamics. The stock markets in both countries increased greatly in recent years and a technical correction is expected, but positive economic data from the United States does not let "bulls" to go down and we see bullish attempts to set new high.
The pair fell to the support near 101.59, but soon returned to the level of 101.87. Nevertheless, it is sold here that increasing the possibility that the current support will be tested. The support break may lead to a lowering to 101.22.