The EUR/USD returned to a fall after a correction

07 April 2015, EUR/USD


The EUR/USD returned to a fall after a correction

The euro closed the session with an increase against the dollar. There was change in the number of unemployed in Spain that amounted -60,2K against the earlier -13,5K, although it was expected -18,3K. Last week the pair euro/dollar remained under pressure having decreased to the support near 1.0750-1.0770. Then the pair showed a positive trend having recovered to the level of 1.0900-1.0920. The pair increased to the level of 1.1000-1.1020 on the US weak employment report. Undoubtedly, the euro received a chance for recovery, but it needs to overcome the resistance near 1.1000-1.1020 to continue its growth, so it is not the fact that the euro will be able to use this chance.

The support levels are 1.0880-1.0900, and the resistance levels are 1.1000-1.1020.

MACD is in a positive territory.

Trading recommendations

However, we recommend to long on the rebounds towards 1.0880-1.0900. The resistance level of 1.1120-1.1140 is the first target. The support level of 1.0880-1.0900 breakthrough will signal about the pair euro/dollar decrease resumption.


The EUR/USD returned to a fall after a correction

The pound as the euro has grown against the dollar and ended the day with a "profit." This week information about the indicator, proving the lack of activity in the UK economy will appear on Tuesday. The service sector PMI is expected with a slight increase from 56.7 to 57.0 in March.This week main event may be the Bank of England meeting about the interest rate.

The whole last week the British pound was consolidating in the range, limited by the support near 1.4750-1.4770 and the resistance near 1.4900-1.4920. On Friday the pair broke through the resistance and rose up above this level on the US weak employment report.

The support levels: 1.4880-1.4900 and the resistance levels: 1.5000-1.5020.

The MACD indicator is in a positive territory.

Trading recommendations

The pound achievements are still very modest which puts into question its ability to move much higher the current levels. However, before the European markets reactivation it is meaningless to draw conclusions about the pair dynamics. The pair still needs to overcome the resistance around the psychological level of 1.5000-1.5020 to continue its growth. The support 48th loss will signal about the downtrend resumption.


The EUR/USD returned to a fall after a correction

After the US labor market release the pair dollar/yen has decreased and the Japanese yen increased at the end of the day as well as its European counterparts. After the trading in a flat the pair slightly increased at the Monday’s trades. According to the Cabinet of Japan preliminary data the leading economic indicators which reflect the change in business activity in the future fell less in February than analysts had expected - only to the level of 105.3 compared to the previous month when it amounted to 105.5. Analysts had expected the indicator decrease to 104.9.

Last week the bulls unsuccessfully tried to consolidate above the 120th figure. In its turn, the support around 119.05-119.25 limited the bears’ attempts to break through below this level. They managed to overcome this level on the US weak employment report which led to the pair decrease below this level. The pair consolidated there and then tested the resistance level of 119.25-119.45.

The support levels: 117.95-118.15, and the resistance levels: 119.05-119.25.

The MACD indicator is in a negative territory.

Trading recommendations

Now bears can test the support around 117.95-118.15 and its breakthrough will open the way towards the 116th figure. Bulls still need to overcome the resistance near the 120th figure for the uptrend resumption.

Ruban Sergey
Analyst of «FreshForex» company
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