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Any pound attempts to grow will be stopped

07 August 2014, EUR/USD


Any pounds attempts to grow will be stopped

The single European currency continues to show a weakness, despite the reduction in the yield spread of 10-year-old American and German bonds in recent days. This factor, in its turn, confirms the strong euro/dollar bearish trend.

The euro/dollar continues to decline through a consolidation, against which it recovered to 1.3444, the indicators came out from the oversold zone that made the single European currency selling more comfortable.

The support levels are 1.3310- 1.3330, and the resistance levels are 1.3375 - 1.3395.

MACD is in a negative territory.

Trading recommendations

The pair broke the support at the 34th figure by a decreasing and dropped to 1.3330 which is still holding back the "bears" attack. However, the market sentiment remains negative and the pair may fall to the 33rd figure.


Any pounds attempts to grow will be stopped

The National Office of Statistics published the UK industrial production for June. Leading indicators show a positive background - portfolio growth in industrial orders CBI was observed in the first month of summer.

The pound is oversold which is the result of its fall that had helped it to come back and stay above the level of 1.6850.

The published industrial production and a GDP growth in the UK which may have an impact on the pound dynamics. A weak data will prove a further pound sale.

The support levels are 1.6830 - 1.6850, and the resistance levels are 1.6900 - 1.6920.

MACD is in a negative territory.

Trading recommendations

A subsequent decrease in the support direction continued to attract a moderate buying interest, whereby the pair did not leave unsuccessful attempts to break through the resistance at 1.6900.


Any pounds attempts to grow will be stopped

The pair is now clamped in a vise. On the one hand, we saw the American currency strengthening along the whole market the last three weeks which is positive for the bulls. On the other hand, the world's leading stock markets demonstrate the weakness and the bears are trying to profit from it. The Japanese stock market follows the general trend and also shows a decline in quotations.

USD/JPY is consolidating after the rising to 103.00.

The support levels: 101.80- 102.00, and the resistance levels: 102.30- 102.50.

The MACD indicator is in a neutral territory.

Trading recommendations

If the 103rd figure is broken the dollar will rise to 104. The support 102.20-102.00 loss may signal about the downward correction resumption.

Ruban Sergey
Analyst of «FreshForex» company
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