The EUR/USD is going to July low | 16 Julio 2014

Euro

The latest reports on the leading Eurozone economy show a strong industrial production and retail decrease amid the negative background we expect the positive ZEW institute report and the moderate pair decrease.

The euro/dollar started a new trading week on an optimistic note, testing the resistance level of 1.3650. As this optimism wasn't supported by any factors, it was short-lived, so the pair returned to the local support in the area of 1.3590.

The support levels are 1.35150- 1.3535, and the resistance levels are 1.3590 - 1.3610.

MACD is in a neutral territory.

Trading recommendations

The previous day has not changes the overall picture, so the balance remains the same - the reducing risks and the risks to test the support level of 1.3535 are preserved. The euro has to rise up and consolidate above of 1.3700/20 to weaken the "bearish" pressure.

Pound

After a pause we expect the GBP/USD volatility spike. The ET midst will please investors with the most important macroeconomic indicator publishing - the consumer price index. It should be noted that the leading indicators show a mixed pattern. The June oil price rise with unemployment rate decrease contributes UK inflationary pressure growth.

The pound / dollar also began the week with a growth, but it was sold on increase to 1.7170, bringing back the support to the 71st figure, falling to 1.7070. The pressure is preserved and it may test the support at 1.7070/90 in the short term.

The support levels are 1.7050 - 1.7070, and the resistance levels are 1.7110 - 1.7130.

MACD is in a neutral territory.

Trading recommendations

The 1.7110 breaking may lead to a fall to 1.6980 level which loss may become a downward correction development confirmation.

Yen

The BoJ announced the results on monetary policy meeting, which didn’t surprise anyone. Despite the fact that Japan shows the personal consumption decrease – the inflation shows growth by increasing the tax burden and satisfies the monetary authorities. In the light of this we can expect the lateral trends development. At the American session all the traders' attention will be focused on the U.S. retail sales data publication with Intel, Johnson & Johnson and JPMorgan Chase reports for the second quarter. The support levels: 101.20- 101.40, and the resistance levels: 101.70- 101.90.

The MACD indicator is in a negative territory.

Trading recommendations

The pair is making unsuccessful attempts to grow. We believe the pair won’t go further 101.60 now. We expect a bounce down towards 101.30 through 101.40.