The EUR is about to grow | 18 August 2014

Euro

Any single European currency attempt to grow above 34th figure meets a strong pressure from the bears that confirms the existence of a stable downward trend in the pair.

However, it can not last for a long time and soon we will see a "natural" reaction to all negative releases. Bond market as well on the side of the bears - the yield spread of German and American 10year bonds again showed a growth which is a positive factor for the dollar. In this regard, our forecast remains the same.

The support levels are 1.3330 - 1.3300, and the resistance levels are 1.3375 - 1.3400.

MACD is in a negative territory. The histogram is decreasing.

Trading recommendations

A break above 1.3428 could change the current situation, after the break the mark of 1.3468 will be the next target.

Pound

The second UK GDP estimate will not be able to cause a strong reaction as no one expects the index change. However, market participants have a negative attitude towards the "cable" and we can expect the price drop to 1.6640.

The GBP/USD is consolidating after falling to 1.6657. After this level testing the pair pulled back to 1.6697. The break of 1.6720 support area is a negative factor for the British currency, however, given the magnitude of the corrective fall, it should be noted the growing risks of its recovery.

The support levels are 1.6640 - 1.6620 and the resistance levels are 1.6720 - 1.6750.

MACD is in a negative territory.

Trading recommendations

There is a possibility that bull can start trading, but to weaken the downward pressure the pair needs to grow above 1.6720. In this case, we can expect the pair to recover to 1.6800-1.6842.

Yen

Bullish sentiment will continue to prevail as there are no strong drivers now to strengthen the Japanese currency. Macroeconomic statistics has been disappointing foreign exchange market in recent weeks which together with the demand for the world's leading stock market stops from taking the pair above 101st figure. Against this background, we should open long positions from the current support levels.

The support levels: 102.30- 102.50 and the resistance levels: 102.70- 102.80.

The MACD indicator is in a negative territory.

Trading recommendations

The USD/JPY is still trading without any change, not being able to develop a movement in one direction or another. The other day, the dollar fell to 102.30, having rebounding from which it returned to 102.55. The situation is the same: "bulls" are defending and the break of 101.59 and 101.22 will put off any chance for the uptrend development.