06 August 2014, EUR/USD
The traders’ attention is focused on the retail trade release in the euro area. The leading Euro zone countries have already reported on this direction and as always Germans were ahead, showing high sales growth in retail sector amid its neighbors. Against this background, we can expect the data on the level of the forecasts with slight variations that can not support the strong demand for the euro.
The support levels are 1.3310- 1.3330, and the resistance levels are 1.3375 - 1.3395.
MACD is in a neutral territory.
The euro/dollar was traded in the middle of a growth wave. We expect the continued growth above the level of 1.3420 today. Next, we expect the correction to the level of 1.3375. The current potential leads to the level of 1.3535 testing.
The Center for Macroeconomic Research Markit Economics will publish the PMI services. The economists polled by Bloomberg, expected increase in the index to the level of 58.1. However, the manufacturing index negative dynamics can not be expected to yield a good data on this background and a bearish sentiment will prevail in the pound/dollar. The traders should also closely monitor the trading progress in the cross-course EUR/GBP - this pair is consolidating near the strong resistance level of 0.7980 and if it breaks it the "cable" may fall to 1.6785 against the U.S. dollar.
The support levels are 1.6830 - 1.6850, and the resistance levels are 1.6900 - 1.6920.
MACD is in a negative territory.
The pound/dollar showed a slight upward movement. Its rate wavering was in a narrow range, limited by the support in the area 1.6785 and the resistance at 1.6900. Thus, it is not necessary to talk about any changes in the overall picture again.
We should expect the side trend - the 10-year U.S. Treasuries yields decline works as a deterrent for the uptrend continuation. In addition, at any time, we can see the technical correction continuation in global stock markets which is also negative for the bulls.
Some consolidation in the dollar/yen, after rising to 103.00 is a completely natural phenomenon, but the dollar inability to break the 103rd figure can cause the "bulls" to doubt their abilities.
The support levels: 102.10- 102.30, and the resistance levels: 102.70- 102.90.
The MACD indicator is in a positive territory.
We expect a possible short-term profit-taking by speculators, the dollar may test the support at 102.00. Its break out will strengthen a downward pressure.