The Euro volatility is decreased | 25 Julio 2014

Euro

The States still publish the positive macroeconomic statistics and as the result the dollar keep strengthening. The oil and gold quotations decrease which is a positive factor for the "bulls" on the dollar.

The euro/dollar continued to decline as a result of which the support at the level of 1.3480 has been tested and subsequently broken. Any substantial progress below did not follow as the level of 1.3420 could hold the "bears" pressure.

The support levels are 1.3400- 1.3420, and the resistance levels are 1.3480 - 1.3500.

MACD is in a negative territory.

Trading recommendations

After the support level of 1.3480 breaking and decrease to 1.3445 the euro/dollar consolidated between these levels. The market activity was very low. The negative outlook remains valid while the bounces towards 1.3535 should not be excluded.

Pound

The BoE, as well as the U.S. Federal Reserve has split into the two camps on the key decision about the monetary policy tightening. The investors' expectations for an early increase in the refinancing rate are gone. Now we see the "bearish" sentiment predominance.

The support levels are 1.6960 - 1.6980, and the resistance levels are 1.7070 - 1.7090.

MACD is in a negative territory.

Trading recommendations

Apparently, the pair tries to develop a downward correction and the next immediate bearish target located on the level of 1.6980, a break of which will increase the downward pressure.

Yen

Japan did not please the investors with any interest reports publication as all the market participants' attention is drawn to the States which will publish the release on housing sales in the primary market. It should be noted that the real estate market has a very high importance to the U.S. economy and the new buildings sales volume was always closely monitored by the Forex players.

The support levels: 101.50- 101.70 and the resistance levels: 102.00- 102.20.

The MACD indicator is in a neutral territory.

Trading recommendations

The rise above 102.00 would weaken the bearish pressure and the resistance break through 102.30 will suggest the consolidation development and the uptrend resumption.