manager photo
Online Assistant
We will be pleased to answer any questions you may have
Write Call
Log in

The pound keeps recovering

18 September 2014, EUR/USD


The pound keeps recovering

The markets tension is heating up, and some traders have already revised their position, knowing that the Federal Reserve uncertainty about market rates will render pressure on the dollar. For the single European currency, "the American difficulties" are not the most important. If the Fed does not justify investor expectations, and the dollar starts to weaken locally, then the pair EUR/USD rise will not be continuous as the prospects for the Fed and the ECB monetary policy are very different.

The pair euro/dollar was traded in a narrow range limited by the support level of 1.2890 and the resistance level of 1.2960.

The support levels are 1.2870- 1.2890, and the resistance levels are 1.2960 - 1.2980.

MACD is in a neutral territory.

Trading recommendations

The market participants expected the FOMC meeting results and the Fed comments about further monetary policy. It is possible that this information will give an opportunity to the euro/dollar upward correction development and to reduce short positions on the euro.


The pound keeps recovering

Awaiting the upcoming Scotland independence referendum results are defined in terms of the nearest pound perspectives. The published official statistics showed the consumer inflation increase in August at 0.4% m/m, 1.5% y/y. Based on this survey according to which the vote number against the Scotland independence is increasing the pound is growing. The quotes again grew strongly, breaking through the resistance level of 1.6300.

The support levels are 1.6280 - 1.6300, and the resistance levels are 1.6370 - 1.6390.

MACD is in a neutral territory.

Trading recommendations

It is better to refrain from opening new pound positions owing to the unpredictable referendum results and possible volatility spikes.


The pound keeps recovering

The Japanese Yen remains in the trading range. According to Nikkei, the Japanese government will lower the economy assessment in its September report. Earlier, Kuroda the Bank of Japan’s governor said that the Japanese economy is on the way towards achieving the 2% inflation rate. He added that the softening policy would be continued until inflation is not stabilized at the level of 2%. The Bank of Japan will make changes to its monetary policy without delay, as soon as necessary.

Despite the fact that trade volumes are gradually falling down, the pair USD/JPY upward trend is still relevant. Until the key support level of 106.70 is not broken, the bulls are still strong.

The support levels: 107.00- 107.20, and the resistance levels: 107.80- 108.00.

The MACD indicator is in a positive territory.

Trading recommendations

For the upward trend strong continuation, the buyers need to break through the resistance level of 107.80 and consolidate above this level. Due to this breakthrough the way for the next resistance level of 108.20 will be opened.

Ruban Sergey
Analyst of «FreshForex» company
See also:
Agree with the review?
Traders' opinion:

We are constantly improving our website quality. If you have any suggestions on how to make our website better or noticed an error on the website, please tell us

Tell us

Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .