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The EUR/USD keeps falling after the ECB meeting

05 September 2014, EUR/USD


The EUR/USD keeps falling after the ECB meeting

The main currency sharply declined after the European Central Bank meeting. The ECB decided to reduce the interest rate from 0.15% to 0.05 that was at a surprise for the traders.

The investors are interested in the Central Bank reaction to the euro area economy apparent decline and, in this regard, the incentive program possible launch. The EUR/USD fell below 1.2960.

The support levels are 1.2940- 1.2960, and the resistance levels are 1.3030 - 1.3050.

MACD is in a negative territory.

Trading recommendations

The pair fell sharply, reaching new minimums. The pair further dynamics will depend on the ECB actions, as well as non-farm releases.


The EUR/USD keeps falling after the ECB meeting

The pound/dollar fell sharply after the European Central Bank meeting against the background the interest rates reduction. The Bank of England results announcement will not cause the market participants strong reaction. All the traders’ attention will be focused on the United States publication. The economists expect for the agency ADP data release at 216 000 new jobs. As the GBP/USD ignores the UK positive releases the bearish trend is still in force.

The pound/dollar is trying to develop recovery was unsuccessful, as on the growth to the 65th figure the pair was sold again, and it fell to 1.6440. The pair hit a low of 1.6350 by the end of the European session.

The support levels are 1.6350 - 1.6370, and the resistance levels are 1.6430 - 1.6410.

MACD is in a negative territory.

Trading recommendations

The pound is waiting for a decision by the Bank of England interest rate and the asset purchase program terms. Since oversold currency exclude bounces above is not necessary, but the growth should consider the short positions opening.


The EUR/USD keeps falling after the ECB meeting

The Bank of Japan will announce its meeting on monetary policy release. The growth potential for the entire US currency market (index USDX) still exists. We can see the demand for the dollar against this background and also amid a moderately positive statistics from the United States ISM services sector and the employment terms from ADP. The USD/JPY is testing the level of 105.00.

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

In general, the uptrend remains in force, so the level of 105.50 testing risks are preserved. Also, the dollar failure to gain a foothold above the 105th figure could trigger a profit-taking and the currency reducing in the 104th figure direction.

Ruban Sergey
Analyst of «FreshForex» company
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