18 July 2014, EUR/USD
States released the construction sector report which showed the growth compared with the previous month, with increased consumer confidence. We feel comfortable taking a short-term long position on the pair and record profits after updating the minimum 2014 value located around of 1.3480. The euro/dollar continues to fall. The pair tested and broke support at 1.3535 and then touched 1.3520.
The support levels are 1.3460- 1.3480, and the resistance levels are 1.3535 - 1.3555.
MACD is in a negative territory.
The negative outlook still persists; the "bears" targeted the support around of 1.3480. The possible kickbacks to 1.3535-1.3600 should be regarded as an opportunity to open the short positions.
Despite the positive UK inflation release on - the investors are in thought once again. The labor market report showed the wages level reduction as the decrease continues for the two consecutive months that will act as the inflationary pressures deterrent in the short term.
After reaching a new high at 1.7192 the pair retreated to the local support level of 1.7113 and then consolidated between these levels.
The support levels are 1.7050 - 1.7070, and the resistance levels are 1.7170 - 1.7190.
MACD is in a neutral territory.
This fact gives reason to reflect on the possible peaks formation and the subsequent downward correction development. The current support loss will reduce the pair to 1.7054. The level breakthrough will give the opportunity to test the psychological level of 1.7000.
Despite the stock market strong growth due to the positive U.S. corporation's reports - the "bulls" cannot take the 102 figure. The "bulls" failed attempts to foothold above the 101.59. The pressured dollar fell below this level again, testing the 101.40 mark.
The support levels: 100.80- 101.00, and the resistance levels: 101.70- 101.90.
The MACD indicator is in a negative territory.
The dollar could retest support at 101.22 in the short term which breakthrough will lead to the decrease to 100.68. Technically, the negative outlook still persists as the dollar needs to mitigate the downward pressure to overcome the level of 101.79.