The EUR/USD bulls want the market back | 26 Marzo 2014

Euro

After the France statistics was released the euro/dollar rose up to 1.3826, where the pair was sold and as a result it fell down to the support near 1.3740. The rest of the day the pair spent just above this level, the market activity is low.

The support levels: 1.3740-1.3710, and the resistance levels: 1.3810 - 1.3835.

MACD is growing when the indicator changes the direction it can finish the correction.

Trading Recommendations

What caused the beginning of the week growth is not clear yet, the movement activated some stop orders, so it is hard to say about the uptrend resumption. The continued growth is possible only if market participants buy from the current levels. The euro can still return to 1.3760.

Pound

This week key event is CPI UK release. The inflation is currently below the target level of 2% according to Bloomberg - in February, the economists expect is a reduction to 1.7 % on an annualized basis. The compression inflationary pressure jeopardizes the future interest rates growth which acts as a negative factor for the British currency.

The support level 1.6480 and the resistance one is 1.6550.

MACD is pointing up, the indicator doesn’t give an accurate signals.

Trading Recommendations

The growing above 1.6536 could weaken the bearish strength, giving the bulls a chance to test the 66th figure.

Yen

Japan will not please the investors with a publication of interesting reports. For the three consecutive days the dollar/yen has been trading near 102.82 strong resistance level. The investors are positive and waiting for the moment to go long, but the drivers on the upside are still there. The U.S. economic data also won’t be able to contribute to the strengthening of the dollar versus the strong Japanese rival.

The support levels: 101.90 - 102 and the resistance levels: 102.60 - 102.80.

MACD is turned down indicating the correction, change of direction indicator will be the completion of a downward correction.

Trading Recommendations

The pair fails to get up above the dollar high on March 19. That fact increases the risks of a renewed decline. The falling below the 102nd figures will be proof of that and will lead to the support level 101.60 testing.