The EUR/USD met the strong resistance | 02 July 2014

Euro

The Eurozone continues to disappoint investors with the negative macroeconomic statistics, but we are still seeing the upward movement. We expect the upside growth above 37 figure where the nearest strong resistance is located at 1.3733. We had got the unemployment figures for May in the European trading session midst.

There are no prerequisites for positive output report and amid this we can expect the data release on the forecasted medians level. The U.S. on the contrary can make a pleasant surprise - the ISM manufacturing sector shows the growth during 4 consecutive months and the positive trend continuation will be the good support for the U.S. currency.

The support levels are 1.3630- 1.3650, and the resistance levels are 1.3700 - 1.3720.

MACD is in a positive territory.

Trading recommendations

The pair is trading below 1.3700-1.3720. The latter level break will weaken the "bearish" pressure and will give reason to continue the growth to 1.3800. While the level of 1.3720 is not broken, the renewed decline risks will continue.

Pound

The center for macroeconomic research Markit Economics will publish a report on the UK manufacturing sector PMI index. The net exports strong reduction in the last report, in conjunction with a decline in retail sales from CBI data we believe that the data will be as forecasted.

The States production sector similar release may please investors with the good data. This factor, combined with a reduction in the money supply in the UK will support the U.S. currency.

The support levels are 1.7090 - 1.7110, and the resistance levels are 1.7170 - 1.7190.

MACD is in a positive territory.

Trading recommendations

Undoubtedly, the next breakout high marks should be regarded as a positive factor for the pound, but the fact that it is overbought does not aspire us for buying and yesterday's rise could happen on a low liquidity background. We wonder if the pair could consolidate above the broken high marks.

Yen

In the important macroeconomic statistics publication absence we should follow the trading dynamics on the Japan market. The external background is not conducive to "bullish" moods on the Tokyo Stock Market - the leading stock indices showed the decrease. Internal conditions also play on the bear's side - there was a decline in industrial production in May, as well as the strong private consumption slowdown that maintains the risks to reduce the market share. In this case, the pair will test the support level of 101.09.

The support levels: 101.20- 101.40, and the resistance levels: 101.70- 101.90.

The MACD indicator is in a negative territory.

Trading recommendations

The increase attempts limited at 101.53. The negative mood persists, but the "bears" have yet to overcome the level of 101.22. If they break this level, they will be able to test the support at 100.68. The return and the ability to consolidate above 101.59 could weaken the "bearish" pressure.