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The euro keeps strenghening its positions

Euro


The euro keeps strenghening its positions


The pair EUR/USD rebounded upwards several times, starting from the two-year low of 1.2160-1.2180 having reached the high of 1.2200-1.2220. Then the pair fell with a gap. The US dollar regained success amid the Tuesday gross domestic product release that showed the US higher economic growth rate than expected in the third quarter. We expect the dollar bullish trend will be continued, as the Federal Reserve is likely to begin interest rates raising next year if the US economic data continue to improve.


Trading recommendations


It is now recommended to short with the first target at the level of 1.2100-1.2120 within the euro. If this target is overcome, the shorts will be relevant with the target at the level of 1.1970-1.1990.


Pound


The euro keeps strenghening its positions


The pair GBP/USD rebounded from the 15-month low of 1.5480-1.5500 that was reached on Tuesday, after the UK GDP disappointing data release and the current account deficit increase. The final annual gross domestic product evaluation was revised to 2.6 per cent compared with the previous reading at the level of 3.0 percent. The last Wednesday US dollar weakness helped the British pound to grow above to test the key level of 1.5550-1.5570. However, the US unemployment data showed a significant jobless claims decrease last week. The indicator fell to 280,000 from 289,000 for the previous period and was lower than analysts had projected the growth to 291 thousand.


Trading recommendations


It is now recommended to sell with the first target of 1.5500-1.5520 within the pound. When the first target is overcome, the level of 1.5410-1.5430 will be the new target.


Yen


The euro keeps strenghening its positions


The dollar rose by 0.12% to 120.22 yen, compared with the reached 7.5 years high of 121.86 in December.


The US dollar discreet decline shows that the willingness to take risks is increasing. Probably the yen will continue to fall in price, as the US economic indicators improvement, stimulating a desire to risk, is becoming more clear.


Trading recommendations


It is now recommended to buy with the first target of 120.80-121.00. When the first target is overcome, the level of 122.20-122.40 will become a new target to grow.

 

Ruban Sergey
Analyst of «FreshForex» company
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