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The majors hold their positions

22 July 2014, EUR/USD

Euro

The majors hold their positions

The last trading week closing below the key support level of 1.3563 opens the way to the current year minimum update, located at around 1.3476. The bond market shows a downward trend as well- the 10-year German bonds yield had a peak down which means there is no demand for the single European currency.

Over the last week the pair went from the top to the bottom about 150 points although under the normal market activity "distance" in a passage 100 points within the same trading day.

The support levels are 1.3460-1.3480, and the resistance levels are 1.3535-1.3555.

MACD is in a negative territory.

Trading recommendations

With the start of a new week, the euro is trying to break above the resistance at 1.3535, but unsuccessfully. The recovery towards the 36th figure should not be excluded, but the forecast for the pair remains negative.

Pound

The majors hold their positions

The lack of interesting reports from the UK and the U.S. will force the traders to refrain from an active trading and against this background that we should expect the development trends in the side during the day. The traders should closely monitor the cross-rate EUR/GBP dynamics - this pair formed a stable long-term downtrend and the trend continuation will support the demand for the British currency against the U.S. dollar.

The support levels are 1.7050 - 1.7070 and the resistance levels are 1.7170 - 1.7190.

MACD is in a negative territory.

Trading recommendations

The British currency inability to consolidate above 1.7170 gives a reason to assume a following downward correction formation, but so far the pound is trading above 1.7050, the risks of testing high will be preserved.

Yen

The majors hold their positions

The dollar/yen trading ideas remains the same – the long positions opening on reducing quotations to 101st figure and the profit fixing at the resistance levels of 101.40 and 101.70. There are no any drivers to change the market sentiment. In this regard, we expect a continued side trend within the range of 101.00 -102.70 which we observe the last two months.

The support levels: 100.80- 101.00, and the resistance levels: 101.70- 101.90.

The MACD indicator is in a negative territory.

Trading recommendations

The "Bears" for the dollar/yen is not abandoned their attempts to overcome the support at 101.40 which have been unsuccessful. At the moment it is tested again and can be broken. In this case, we should expect the fall to 100.00.

Ruban Sergey
Analyst of «FreshForex» company
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