The dollar shows a weakeness | 25 Junio 2014

25 Junio 2014, EUR/USD

Euro

The dollar shows a weakeness

The USA can not support the "bears" with a positive report - the consumer confidence and home sales in the primary market are expected as they have been forecasted. However, the negative internal conditions may weaken the euro where the nearest strong support is around 1.3547.

Another euro/dollar consolidation is continued. After falling to 1.3512 the pair corrected to 1.3643, further on it returned to the range between the support at 1.3545 and resistance at 1.3618.

The support levels are 1.3570- 1.3590, and the resistance levels are 1.3650 - 1.3670.

MACD is in a positive territory. The indicator supports the downward sentiment.

Trading recommendations

The negative on the euro is preserved and a recovery to the 37th figure can be used as an opportunity to short. The immediate goal is the support around 1.3512-1.3475.

Pound

The dollar shows a weakeness

The Consumer Price Index in the latest report showed a decrease to 1.5% year on year which is a negative factor for tightening monetary - credit policy

The demand for the British pound is preserved. Its decline against the dollar earlier broke the psychological level 1.7000 having attracted the buying interest. "Bulls" do not leave the attempts to re-test the current high at 1.7062.

The support levels are 1.6960 - 1.6980, and the resistance levels are 1.7010 - 1.7030.

MACD is in a positive territory.

Trading recommendations

The inability to grow higher can turn to profit-taking and a downward correction development. The loss of 1.7000 would lead to a decrease to 1.6950-1.6900.

Yen

The dollar shows a weakeness

The USA continues to give the market positive macroeconomic signals and after a technical correction we expect a growth on the world's leading stock market which may support the demand for the pair. The consumer confidence and the Conference Board housing sales in the primary market is expected to on the forecast level that just will be a moderate support for the U.S. currency.

The support levels: 101.50- 101.70, and the resistance levels: 101.80- 102.00.

The MACD indicator is in a neutral territory. The indicator does not give any clear signal.

Trading recommendations

The ability to hold above 101.81 could lead to the resistance 102.20/30 testing. Its break will give the "bulls" an opportunity to test the resistance at 102.80.

Ruban Sergey
Analyst of «FreshForex» company
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