The bears returned to EUR/USD | 08 July 2014

Euro

We should expect the further euro/dollar decline. The published industrial orders level release in Germany last week showed the decrease of 1.7% which indicates the weak report on industrial production.

The euro/dollar continued its recovery, testing the 37th figure last week. Its growth was corrective, therefore the reducing renewal is to be expected. After unsuccessful attempts to overcome this level the pair came under pressure again and by the end of the week fell to 1.3585.

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

MACD is in a negative territory.

Trading recommendations

It looks logical to test support at 1.3545 now and in case of the break – the support will be around of 1.3500-1.3475. The pair should grow up and consolidate above of 1.3618 to loosen the "bear" pressure.

Pound

The GBP/USD set a fresh high for the last 5 years on the last week as investors took on the long positions on this backdrop. In the absence of important macroeconomic statistics it is difficult to expect the pound quotations growth.

The GBP/USD slowed its growth after the resistance around 1.7179 testing. It entered the consolidation phase, trading between this level and support at 1.7130/00 area.

The support levels are 1.7090 - 1.7110, and the resistance levels are 1.7170 - 1.7190.

MACD is in a positive territory.

Trading recommendations

The demand after falls is still preserved as well as the resistance break risks and 1.7200 testing. The "bears" need to break support at 1.7100 for a decrease which will open the way to a psychological level of 1.7000.

Yen

We not expect the interest reports publishing and on this background we should follow the trading dynamics on the world's leading stock exchanges. After a technical correction on 4th July - we can again expect the demand for risky assets today, which will inspire "bulls" to open the long positions. In general, we can expect a moderately rising trend on the dollar/yen during the day.

The "bears" on the dollar/yen were failed to break support at 101.22. The dollar struck again the resistance at 101.59, and soon the 102nd figure after consolidating near the level of 101.22.

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

The MACD indicator is in a positive territory.

Trading recommendations

The U.S. currency could not rise above of 102.26 and returned to the 102nd figure. If the dollar manages to hold above it, then we can expect growth resumption and the more important resistance around the level of 102.80 testing.