13 August 2014, EUR/USD
The EUR/USD is being corrected down after the last week strong growth. The European currency began to strengthen immediately after the China strong trade balance data publication. The main Europe economic partner has significantly strengthened its exports. There were also released the Eurozone industrial production good data -the indicator reached the maximum since November 2013. Most investors started fixing their profits from sales which led to a technical correction.
The support levels are 1.3330 - 1.3300, and the resistance levels are 1.3375 - 1.3400.
MACD is in a negative territory. The histogram is decreasing.
The current signals show a consolidation before the euro rush down. Technically, the euro will decline in the medium term, but we expect it to show stability in the nearest time. We recommend to short after the price overcomes the level of 1.3330. The short-term target is the level of 1.3295, the main target is 1.3250.
The pair corrective rally chance is high. Presumably, we observe the downward impulse formation in the first deep mid-term correction wave.
The experts forecast the unemployment rate to fall by 30,000 in July and the unemployment rate decrease to 6.4% for the three months to June. Though the strong resistance 1.6810 is still not broken, it is unlikely that the pound will continue to fall.
The support levels are 1.6785 - 1.6760, and the resistance levels are 1.6850 - 1.6865.
MACD is in a negative territory.
We recommend to fix short positions that are opened below 1.6800. We recommend buying the pair above 1.6796 with the target of 1.6900-1.6960.
The yen retreated from almost three-week high against the backdrop of the Ukraine and Iraq geopolitical tensions weakening that led to a stock market revival and, consequently, reduced the demand for safe assets.
The yen was pressured by the stock market growth after the Japanese Ministry of Health stated that the Government Pension Fund of 126.6 trillion yen will receive a flexibility degree in terms of assets quality.
Now we confirm the yen decrease, while last week the yen rose in price as the market saw it as a refuge currency.
The support levels: 102.00- 102.20, and the resistance levels: 102.30- 102.40.
The MACD indicator is in a negative territory.
The price will continue growing only after breaking the level of 102.30. The fall below 102 will weaken the buyers’ chances to lift the price upwards. The first decrease target is the level 101.70.