29 October 2014, EUR/USD
We do not expect the interesting macroeconomic releases and we may expect a flat within the main currency pair. The US consumer durable goods release will be published. The consumer confidence growth reports by the Institute of Michigan as well as the new buildings data sales let us expect the positive data. The pair euro/dollar continues to consolidate. Yesterday the pair fluctuated between the support level of 1.2660 and the resistance level of 1.2730.
The support levels are 1.2640-1.2660, and the resistance levels are 1.2730 - 1.2750.
MACD is in a neutral territory
While the pair is trading around 1.2710-1.2730 the renewed decline risks will be preserved. The latter level breakthrough will open the way to 1.2800-1.2820. The loss of the support level of 1.2640-1.2660 will mean the pair’s return to the downward direction.
The pound is trying to reach new highs, but bulls can receive the full support only from the US Federal Reserve. We expect the pound/dollar the side trend development against this background. The moderately positive consumer durable goods orders release will give a little support to the bears. The British pound made an attempt to break through the resistance level of 1.6130-1.6150 against the US dollar. The pound perspectives are still negative.
The support levels are 1.6110 - 1.6130, and the resistance levels are 1.6200 - 1.6220.
MACD is in a neutral territory.
To improve its perspectives the pound needs to break through 1.6110-1.6130 and consolidate above this level. It will allow bulls to test the resistance level of 1.6200-1.6220, the level breakthrough will largely weaken the downward pressure.
The retail sales release for September will be published. It is difficult to expect the positive data as Japan is still experiencing problems after the sales tax introduction on April 1. The weak household expenditure data signal about it. The US and Japan stock indices demonstrated technical correction after the continued quotation growth and in this regard we can expect again the upward trend continuation. The US dollar with the Japanese yen was able to continue growth and to overcome the resistance level of 107.90-108.10. Pressure on this pair is still preserved.
The support levels: 107.70-107.90, and the resistance levels: 108.40-108.60.
The MACD indicator is in a positive territory.
If the local support level of 107.70-107.90 can keep the dollar from the further decline, it again will test the resistance level of 108.40-108.60 and the level breakthrough will signal about the growth resumption.