21 April 2015, EUR/USD
The euro has slightly fallen against the dollar. The European inflation confirmed the initial results in the last assessment - the March euro zone consumer price index (CPI) remained at the same level of + 1.1% m/m, -0.1% y/y as well as the baseline (Core CPI) which excludes the food and fuel prices. Having found the support around 1.5000-1.0520, the pair moved a little upwards more than three hundred points and reached the level of 1.0848. However, as long as it is trading below the resistance around 1.0900-1.0920 and the psychological level of 1.1000-1.1020, we should not talk about the sustainable larger correction development. The pair decreased under the support level of 1.0750-1.0770.
The support levels are 1.0610-1.0630, and the resistance levels are 1.0770-1.0790.
MACD is in a positive territory.
The growth and ability to consolidate above 1.0900-1.0920 will ease the downward pressure and it is likely will lead to the level breakthrough of 1.1000-1.1020 which will signal about the further pair recovery in the medium term. Until then, the decrease risks and the lows testing will be preserved.
The British pound has also fallen. The UK statistics reported that in December-February unemployment decreased to 5.6% from 5.7% according to ILO standards while the unemployed number fell by 76 thousand. The December-February UK average wage was fixed with the growth by 1.7%.
Having recovered against the US dollar, the British pound has broken through several figures and rose up to the resistance around 1.5000-1.5020. After this level testing the pair rebounded to the support near 1.4880-1.4900 and once again it found itself below the psychological level of 1.5000. This pound recovery will allow us to be more optimistic about its medium-term prospects.
The support levels: 1.4880-1.4900 and the resistance levels: 1.5000-1.5020.
The MACD indicator is in a positive territory.
The pair’s further growth will depend on its ability to rise up and consolidate above the resistance around 1.5000-1.5040. Otherwise, the pair can once again be under the sellers’ control. Nevertheless, we consider the possibility for the long positions opening on the dips towards the 48th figure. The loss of this level will call into question the pound ability to continue its recovery.
The pair USD/JPY increased the end of the yesterday’s trades. Earlier the Japanese yen strengthened against the dollar amid the negative attitude towards the US dollar. The consumer prices have grown in March for the second month in a row - the consumer price index (CPI) rose up by 0.2% m/m after growth by 0.2% m/m in February. Last week the US dollar declined in pair with the Japanese yen. It was sold off on the growth to 120.85 which led to its decrease to the support near 119.05-119.25. Then it fell under this level. Yesterday the pair corrected above this level.
The support levels: 119.05-119.25, and the resistance levels: 120.20-120.40.
The MACD indicator is in a negative territory.
In general, the situation has not changed as the pair continues to consolidate in the range, but its inability to consolidate above the 120th figure increases the risk of its decrease towards the 116th figure. The resistance breakthrough around 119.05-119.25 may lead to the pair’s increase to the level of 120.20-120.40.