The euro is approaching the level of 1.1000 | 05 March 2015

Euro

The January euro area retail sales is expected with the positive dynamics, we suppose to see a continued growth - this time by + 0.1% m/m after + 0.3% m/m in December. The Eurozone news will present the Purchasing Managers' Index (PMI) final assessment for the euro area services sector and its leading countries. The pair EUR/USD is still in the difficult situation. Bears broke through the support level of 1.1100-1.1120. Yesterday the pair growth attempts were limited by the resistance near 1.1220-1.1270.

The support levels are 1.0980-1.1000, and the resistance levels are 1.1120-1.1140.

MACD is in a negative territory.

Trading recommendations

The pair can break through the current resistance level of 1.1120-1.1140. This level breakthrough will lead to a pair increase towards 1.1220-1.1240.

Pound

The pound as the euro fell against the dollar in the previous trading session. The UK calendar will present the activity index dynamics - the PMI services sector which is major in the British economy. The service sector Purchasing Managers Index (PMI) for February is expected with an increase to 57.4 against 57.2. The pair GBP/USD also remains under pressure, trading below the resistance around 1.5280-1.5300.

The support levels: 1.5200-1.5220 and the resistance levels: 1.5280-1.5300.

The MACD indicator is in a negative territory.

Trading recommendations

We suppose the pair will go to 1.5280-1.5300 first. Having overcome the first target the price might go upwards to 1.5350-1.5370.

Yen

Yesterday the Japanese yen fell against the dollar and leveled the trades’ wins. The Japan economic news showed the services sector activity decrease - the service sector purchasing managers’ index (PMI) fell below the level of 48.5 from 51.3 when it was expected 51.0. It reduced the PMI composite index, taking into account production and services to 50.0 from 51.7 in January. There was no change within the pair USD/JPY. It continues to trade below the 120th figure, although it was sold off on the dips to the local support near 119.25-119.45. In general, the pair is still in the consolidation phase where the risks of re-growth are still preserved.

The support levels: 119.05-119.25, and the resistance levels: 120.20-120.40.

The MACD indicator is in a positive territory.

Trading recommendations

However, the pair inability to rise up and consolidate above the 120th figure can trigger its decrease towards the 116th figure.