The eur could not break through the strong 1.2500 | 06 Octubre 2014

Euro

This week main event is the labor US market release. The traders do not expect changes in unemployment rate. Two of the three major leading indicators show a positive trend – the ADP agency employment data rose to the level of 213 000 in September, as well as the initial jobless claims four week average showed a strong decline the last week of September. The euro fell at the end of trades last Friday. Earlier the pair was traded in different directions, leaving no attempts, even unsuccessful, to develop the upward correction.

The support levels are 1.2480 - 1.2500, and the resistance levels are 1.2580 - 1.2600.

MACD is in a negative territory.

Trading recommendations

The attempts to grow euro rates were unsuccessful. The decline was continued. We expect the level of 1.2425 touching soon.

Pound

The UK economy has been weak the last months and against this background, we observe the British currency decline. We expect the US labor market data which could have a significant impact on the future pair dynamics. The UK 10-year bond yields are near the annual lows, indicating the shrinkage of inflation pressure. The British pound sales were continued. The attempts to increase were stopped at the resistance level of 1.6180-1.6200. The pair broke the support level of 1.6110-1.6130.

The support levels are 1.5940 - 1.5960, and the resistance levels are 1.6040 - 1.6060.

MACD is in a negative territory.

Trading recommendations

We expect the pound fall to lows at the mark of 1.5870 in the short term where the buying interest is possible.

Yen

Traders closed the "longs" after the quotes long-term growth and amid the US and Japan stock markets’ indexes decline. The stock markets look very bullish. We received the US labor market moderately positive data in September. Against this background we can expect the dollar/yen quotations increase. The pair fell to the 108 figure where the buying interest is still preserved against which it returned above the 109th figure.

The support levels: 109.20-109.40, and the resistance levels: 110.20-110.40.

The MACD indicator is in a neutral territory.

Trading recommendations

We expect the dollar growth to the level of 110.20. We do not exclude the fall to the support level of 108.70.