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The French goverment is dissolved

26 August 2014, EUR/USD


The French goverment is dissolved

The traders’ attention will be focused on the institute IFO Germany business climate data this week.

In July IFO indicator fell below 12-month moving average, which confirms the negative trend. In the American trading session we received the United States July new home sales report. The secondary real estate market has reported an increase in sales volume and it can be expected to yield the forecasted median level data. In this regard, we forecast the bearish sentiment prevalence, still avoid the euro sales now.

The euro against the dollar opened a gap down near 32nd figures and then decreased to 1.3194.

The support levels are 1.3140- 1.3160, and the resistance levels are 1.3220 - 1.3240.

MACD is in a negative territory.

Trading recommendations

The negative sentiment will persist and the growth efforts will be used to open short positions. In this case, it is possible that the Germany and the euro area consumer price inflation data, which will be published later this week, will be able to weaken the downward pressure and become a reason to take profits.


The French goverment is dissolved

There are bank holidays in the UK. In the light of this the trading will be quite and in the range, within the levels of 1.6560 -1.6620.

The cable growth was short-lived and after the level of 1.6678 testing the pair fell to 1.6563.

In contrast to the pound, the dollar was able to get a support from the Federal Committee meeting minutes on the Federal Open Market Federal Reserve which was more "hawkish" than had been expected by the traders.

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 pound downward correction may turn into a negative trend, as well as the support in the 67th figure break through signals and the pound inability to return and consolidate above it.


The French goverment is dissolved

The dollar/yen rose by 1.6% and now looks short-term overbought. All the important events of the week are yet to come and so do not rush into the open position. It is worth noting that the uptrend is still in force and after the correction to 103.35 we can open the long positions with the target 104.10.

The support levels: 103.60- 103.80, and the resistance levels: 104.10- 104.30.

The MACD indicator is in a positive territory.

Trading recommendations

The pair continues growing. The target is the resistance level of 104.70. After reaching this level the pair will begin the downward or horizontal correction.

Ruban Sergey
Analyst of «FreshForex» company
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