The dollar's dynamics pressures the euro | 24 April 2015

Euro

The euro could decrease again against the dollar. The euro was supported by the US economic data which showed once again disappointing results. Perhaps the single currency growth could be more ambitious if there was not a Greek problem as Athens is closer to a default amid their unwillingness to fulfill the creditors’ demand. The euro area consumer price index final data was published on Friday - the index was -0.1% on the annual basis in March, compared to 0.3% in February and the preliminary assessment of -0.1%.

Having rebounded from the support around 1.0624, the pair has broken through nearly two figures, testing the resistance near 1.0818. The pair rebounds are limited that points out to the preserved demand.

Trading recommendations

It is possible that the euro is under downward pressure and can decrease towards 1.0470-1.0490. However, we should not still speak about the trend reversal.

Pound

The pound also received support from the US weak data and added profit to their positions against the dollar. The British economic data, released on Thursday by the housing market prices information, showed a positive result. The UK unemployment rate fell from 5.7% in January to 5.6% in February which corresponded to the forecasts; the jobless claims number fell by 20,700 in March, compared to 31,000 the previous month as it was forecasted 29,500.

The pair GBP/USD continued to recover. Having found the support around 1.4880-1.4900, the pair moved confidently upwards, having reached the resistance around 1.5000-1.5020. Then the pair rebounded downwards.

Trading recommendations

The pair may retest the resistance around 1.5000-1.5020 and its breakthrough will significantly improve the pound prospects and will open the way towards 1.5190-1.5210. At the moment we can only speak about the corrective growth, but not about the trend reversal. We should not exclude the bears’ attempts to regain control over the situation.

Yen

The US indicators weakness supported the Japanese yen, but the yen rose against the dollar significantly less than the other majors. Obviously, the technical levels, presented by the strong supports, were cooling point and at the same time the market does not forget about the Fed and the Bank of Japan multi-directional policy. The March US consumer prices have increased for the second month in a row. The US Labor Department data, published on Friday, showed that the consumer price index (CPI) rose up by 0.2% compared with the previous month after its growth by 0.2% in February.

The pressure is still preserved. The pair fluctuated within the resistance around 119.25-119.45 and the support near 118.15-118.35.

Trading recommendations

Bears are still trying to break through the support that will allow them to test 117.95-118.15. Loss of this support may lead to a decrease towards the 116th figure. The dollar still needs to rise up and consolidate above 120th for its growth resumption.