The euro is losing its ground against the dollar | 29 July 2014

Euro

The euro has ended the trading below the key level of 1.3480 which indicates a steady bearish trend. The traders’ attention will be focused on the pending home sales in the United States. It will be the last report on the real estate market from which the data can be expected to yield slightly better than forecasted medians that support the small demand for the U.S. dollar.

The support levels are 1.3400- 1.3420, and the resistance levels are 1.3480 - 1.3500.

MACD is in a negative territory.

Trading recommendations

The "bulls" may test the support at the 34th figure before they will take a break, still they need to overcome 1.3420. The recovery is possible to 1.3480-1.3500 and 1.3535- 1.3555. The growth above the last level may slow the "bears."

Pound

In the absence of important macroeconomic statistics from the UK we should expect the side trend development throughout the day. In the previous review, we said that we should not expect the faster UK economic growth as this factor will deter bulls from the long positions opening. In this regard, we can expect the trading within a range of 1.6951 - 1.7010 today.

The support levels are 1.6960 - 1.6980, and the resistance levels are 1.7070 - 1.7090.

MACD is in a negative territory.

Trading recommendations

Soon the "bears" may test the support level of 1.6952 and then the support near the 69th figure with the rising support line. Its break will lead to a decrease to the 1.6842 mark. Any attempts to grow to 1.7000 should be used as an opportunity to short.

Yen

The U.S. stock market is already tired of growth and begins to show the weakness signs. The technical correction was long overdue and long positions negatively affect the Japanese market shares dynamics. This factor, in its turn, will pressure the pair which is also looks like short-term overbought.

The support levels: 101.50- 101.70, and the resistance levels: 102.00- 102.20.

The MACD indicator is in a positive territory.

Trading recommendations

The last level of 102.00 break will greatly improve the outlook level, but as it's trading below this level, the risks of renewed downward correction will be preserved. However, it is more likely to expect the continued growth at this point.