The EUR/USD returned to local highs at 1.0750 | 22 Abril 2015

Euro

The April business environment sentiment report from the Germany ZEW institute was published this week. After the data output the euro fell slightly against the dollar. By the end of the trades the pair increased. The business environment sentiment index report by the Germany ZEW institute fell to 53.3 in April. Yesterday the pair EUR/USD was under pressure and fell to the support near 1.0630-1.650. Rebounds were limited by the resistance near 1.0770-1.0790.

The support levels are 1.0610-1.0630, and the resistance levels are 1.0770-1.0790.

MACD is in a neutral territory.

Trading recommendations

The pressure on the pair is still preserved as well as the level breakthrough risk with the following reduction towards the support near 1.0610-1.0630. In general, the situation has not changed - the euro needs to break through the resistance near 1.0900-1.0920 for its growth continuation until the forecast is negative.

Pound

The British pound was no exception and at the yesterday's trades it also suffered losses against the dollar, but the pair GBP/USD rebounded upwards at the end of the day. The UK economic data were presented by the Rightmove house prices report in April - the index showed the growth slowdown to 4.7% y/y from 5.4% y/y on the annual basis in March. At the beginning of the new trading week the pair GBP/USD could not continue to grow and returned below the psychological level of 1.5000-1.5020. Having decreased the pair tested the support near 1.4880-1.4900 which successfully held back the bears’ attack.

The support levels: 1.4880-1.4900 and the resistance levels: 1.5000-1.5020.

The MACD indicator is in a positive territory.

Trading recommendations

The support level of 1.4880-1.4900 breakthrough will lead to reduction towards 1.4750-1.4770. If the pound is able to consolidate above this level, bulls will again test the level of 1.5000-1.5020 in the short term and its breakthrough is necessary for the recovery continuation.

Yen

The pair dollar/yen has fixed its growth. According to the Association of Japan chain stores, the Japan supermarkets sales rapidly fell in March. According to the revised data, supermarkets sales fell by 8.6% on the month basis in March after its decline by 0.8% in February. Supermarket sales rose by 13.0% on the month basis. The pair USD/JPY continues to trade in different directions. The pair was sold off on the decline to 118.50 and it rose up to the level of 119.25-119.45. The pair broke this level upwards and continued to increase.

The support levels: 119.05-119.25, and the resistance levels: 120.20-120.40.

The MACD indicator is in a neutral territory.

Trading recommendations

The dollar failed to consolidate under the support around 119.05-119.25 which allows bulls to hope for the 120th figure regular testing. However, while the pair is trading below it, the risks of the renewed decline will be preserved.