manager photo
Online Assistant
We will be pleased to answer any questions you may have
Write Call
Close
Log in

The EUR/USD can bounce upwards

08 August 2014, EUR/USD

Euro

The EUR/USD can bounce upwards

The data showed a sharp industrial orders drop in Germany in June by 3.2% m/m. At the same time the May negative value was sharply revised to 1.6% m/m from the initial 1.7%. In annual terms, the orders fell by 4.3%.

In the light of the inflationary pressure investors expect from the head of the ECB solutions to the problem. The Eurozone manufacturing sector is already showing a slowdown and not far is the time when the service gets into the negative zone. Against this background, the bears continue their attacks and again we expect a decrease.

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 decrease target is the strong support level of 1.3110. The rebound from the support level of 1.3360 up will allow buyers to correct the price to the resistance level 1.35.

Pound

The EUR/USD can bounce upwards

Traders are focusing on 2 key factors - strengthening of the U.S. dollar against major competitors, as well as the leading indicators PMI manufacturing and services sectors UK slowdown. Sales in global markets show a lack of demand for risky assets which is also negative for the British currency. Against this negative background we expect the bearish sentiment and short-term growth that can be used to open short positions.

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

We expect the current low break and the continuation of the falling.

Yen

The EUR/USD can bounce upwards

In the absence of demand for risky assets investors buy the Japanese yen as a result there was a USD/JPY decline. It is worth noting that the Japanese stock market can test the strong support at 15,000 and against this background we should expect the dollar/yen price drop to 101.70. We do not believe in yen strengthening now.

The support levels: 102.00- 102.20, and the resistance levels: 102.30- 102.40.

The MACD indicator is in a negative territory.

Trading recommendations

To continue the growth "bulls" have to overcome the barrier - the 103rd figure. The support loss in this area will increase the probability of the 101.59 support breaking that will confirm the development of a downward correction.

Ruban Sergey
Analyst of «FreshForex» company
See also:
Agree with the review?
Traders' opinion:

We are constantly improving our website quality. If you have any suggestions on how to make our website better or noticed an error on the website, please tell us

Tell us

Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .