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The Euro is too weak to fall further

28 August 2014, EUR/USD


In the absence of interesting macroeconomic releases we should expect a side trend. The key week events are scheduled for Thursday and Friday and in this regard, the market participants may take a wait and see the attitude to assess the bearish trend prospects for the single European currency.

The euro/dollar falling has been continued. The single currency did not manage to break above the resistance around of 1.3214, but the "Bears" came to overcome the support around of 1.3177 and test the level of 1.3152. Nevertheless, the pair’s return above of 1.3177 punched level, rising to 1.3188.

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 pair may well attack again the resistance at 1.3214, a break of which will lead to an increase upwards to 1.3240-1.3264. The euro negative sentiment will remain in a medium and a long term.


The pound/dollar after stabilization in the range of 1.6536 - 1.6600 again began to decline on the United States positive macroeconomic data background. External and internal situation now does not support the sterling strengthening so we can expect the quotes reduce to 1.6510 today. In September, Scotland will hold a referendum on the region independence, the results of which may carry certain risks for the British pound.

The support levels are 1.6480 - 1.6500, and the resistance levels are 1.6570 - 1.6590.

MACD is in a negative territory.

Trading recommendations

The GBP/USD returned to the 1.6538 support area, which again held back the "bears" onslaught, as the pair tries to correct higher, rising to the 1.6572 mark. The short term upward correction risks are rising.


The bulls buy out any dollar/yen decrease which indicates the uptrend existence. As we do not see the strong pressure from importers - their risks were hedged and they are also ready to continue the bullish trend.

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 small corrective wave development is being continued. After its completion we expect the growth continuation. It is most likely that the growth will begin in the coming days. In this regard, our outlook for the pair remains the same: it is necessary to open long positions after the quotations decline to the support levels and take profits at the resistance levels

Ruban Sergey
Analyst of «FreshForex» company
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