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The EUR/USD is getting worsen

21 August 2014, EUR/USD


The macroeconomic data from the euro area continues to disappoint traders - the trade and payments balance data in recent releases showed a decrease, the second report came out significantly worse than the forecasted median. The dollar basket index (USDX) storms to new high in this regard, the market participants may ignore conservative Minutes of the Federal Reserve last meeting.

The EUR/USD sales were continued. That factor did not allow the euro to form a base and begin an upward correction. The support around 1.3330 was broken, but the move below the 33-th figure is not yet possible for the "bears".

The support levels are 1.3200- 1.3220, and the resistance levels are 1.3270 - 1.3290.

MACD is in a negative territory.

Trading recommendations

The euro/dollar shows oversold signs again, which preserves the upward correction hope remnants, although it is not sure that from the current levels. The 33rd figures breaking lead to a fall to 1.3250, where the "bulls" activity is possible.


The British currency is trading in a downtrend against the most of its competitors, and today there are no any preconditions for the trend fracture. The consumer price index minimum value in the current year is located at the level of 1.5%, and against this background it is difficult to expect a bullish sentiment on the pound sterling.

The pound downward correction goes on, and paired with the American dollar, the "British" fell again. The breaking the support at 1.6720, the pair GBP/USD fell to the 66th figure.

The support levels are 1.6550 - 1.6570, and the resistance levels are 1.6640 - 1.6660.

MACD is in a negative territory.

Trading recommendations

The GBP/USD is oversold, which makes uncomfortable selling the pair at the current levels, although not preclude the reduction to the above-mentioned level. If the 65th figure resists the "bears" attack then we can expect a recovery to 1.6700-1.6720.


Japan issued the trade balance for July. The yen has been falling the second month of summer, which is a positive factor for the trade balance, however, the Bank of Japan pointed to the existence of problems in exporting at its last meeting, that now can not be expected to yield the data better than the forecasted median.

The dollar/yen growth is continued. The pair has overcome the resistance level of 102.70 and rose to 103.00. The 103rd figure was broken, and the USD/JPY tested the level of 103.35.

The support levels: 103.15- 103.35, and the resistance levels: 103.80- 104.00.

The MACD indicator is in a positive territory.

Trading recommendations

The dollar looks overbought, and this creates certain risks for the "bulls", though we do not exclude a growth above. The support loss in the area will lead to support levels of 103.00-102.80 and 102.30-102.50 testing, a break of which is needed to return to a downward correction.

Ruban Sergey
Analyst of «FreshForex» company
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