The EUR/USD keeps bouncing down | 03 September 2014

Euro

The Eurozone will not please the traders with the interesting macroeconomic releases publication and in this regard we can expect the side trend. The American market participants returned to work after a 3-day weekend and we got the ISM production index. The 10-year American and German bonds differential yields are still wide enough that is also bullish driver for the dollar. The euro/dollar was traded without much enthusiasm before the European Central Bank meeting report. The pair was trading in a narrow range 1.3145-1.3115. The euro may correct upward before the ECB's meeting release.

The support levels are 1.3080- 1.3100, and the resistance levels are 1.3160 - 1.3180.

MACD is in a negative territory.

Trading recommendations

The support level of 1.3080-1.3100 break will lead to the decrease to 1.3030.

Pound

The Macroeconomic Research Center Markit Economics released the construction sector PMI. The UK construction sector is "overheated" now and the monetary regulator has already implemented the measures to stabilize the industry.

Despite the oversold, the pound/dollar was unable to develop the upward correction. Its growth was stopped by the level of 1.6640 bouncing from which the pair fell to the support level of 1.6570. Then, the decrease was continued and the pound fell to 1.6500.

The support levels are 1.6410 - 1.6430, and the resistance levels are 1.6500 - 1.6520.

MACD is in a negative territory.

Trading recommendations

The minimum levels of 1.6500 breaking will lead to the 64th figure testing. The British currency needs to overcome the resistance in the 1.6640 area for the downward pressure softening.

Yen

Japan has published the July wages level data. The economists surveyed by Bloomberg expect the rate growth on 0.9%. This indicator is the household expenditure important component so the positive data yield will reduce the bull's impulse. The Japanese yen is still under the pressure allowing the pair to continue the growth and may test the level of 105.35. The United States ADP employment and non-farm sector reports can impact the current dollar/yen situation.

The support levels: 104.50- 104.70, and the resistance levels: 105.00- 105.20.

The MACD indicator is in a positive territory.

Trading recommendations

The pair overcomes the level of 105.00 at a steady pace where the bears can be activated. The pair is close to the new maximum. This fact does not inspire to buy the pair at the current levels.