The euro still can grow
The rapid growth euro/dollar was supported by the FDS’ minutes. The Fed officials have different opinions on the state of the U.S. labor market, the inflation shall return back to the normal level of 2% in a few years, an unusually bad weather at the beginning of 2014 held back the economic activity in the U.S. and the executives also mentioned the Fed's reluctance to include new figures reference in their statements. The EU fundamental data were slightly better than the forecast was.
The EU consumer price might be interested this week. The traders will pay attention exactly to this event.
The support is 1.3760. The resistance is 1.3860.
We believe the euro will continue growing this week. The main targets are 1.3860 and 1.3900. If the pair goes down the movement shall be deep and will be just a correction.
We expect important fundamental data this week. The news can significantly affect the pair in the medium term. In particular we expect unemployment rates which according to the experts can change for the worse and make - 30.0 K.
We can sell the pound if the pair gets below the support 1.6684 and 1.6640. The sell target is the support minimum level 1.6550.
The support is 1.6670. The resistance is 1.6730.
We can start buying if the pair breaks up the resistance level 1.6775. The pair can aim at 1.6820 the previous trading week maximum, which is also the peak of this year.
We expect the pair to grow to 102.17 this week.
The support is 101.60. The resistance is 102.23.
If the pair returns to falling it will aim at the support 101.20 and 100.75. Keep in mind that the current trading week is rich with the USA fundamental data which may greatly affect the USD/JPY course. Particular attention should be paid to the USA Retail Sales which always support the dollar growth.
Ruban SergeyAnalyst of «FreshForex» company
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