The euro is in a side range 1.3160-1.3100 | 27 August 2014

Euro

In the absence of important macroeconomic statistics a side trend is expected. The 10-year German and American bonds yields are expanded again, that it good for the bears. The euro/dollar increase attempts were limited by the resistance level of 1.3220. The bears tried to test the level of 1.3160.

The support levels are 1.3140- 1.3160, and the resistance levels are 1.3220 - 1.3240.

MACD is in a negative territory.

Trading recommendations

Nevertheless, the interest in the euro selling remains and the currency risks resume the decline. In case of the support breaking the decrease to the level of 1.3100 should be expected, but it should be noted that the euro looks oversold and that increases the upward correction risk which should be used to open short positions.

Pound

The bank holidays are over and the market participants returned to work. We do not expect any interesting reports from the UK. The cross-rate EUR/GBP decreased against the euro zone economy, its weakness will support the pound against the dollar. However, many investors continue to look with skepticism at the pound due to the shrinkage of inflation pressure. The pound/dollar has been opened lower last week levels, but the bears failed to break below the level of 1.6570 till yesterday's American session. Let's see if the pair consolidates below. If successful it will go further to 1.6500.

The support levels are 1.6480 - 1.6500, and the resistance levels are 1.6570 - 1.6590.

MACD is in a negative territory.

Trading recommendations

A growth above will weaken the pair and allow the bulls to test the resistance level of 1.6720, where the bears can be activated. This level break will open the way to 1.6850.

Yen

The Japan market participants will be pleased with the interesting macroeconomic reports only on Friday, and until that time all the traders’ attention will be focused on the United States statistics. The USD/JPY has been opened above the last week close levels. The pair upward movement failed and it was gradually decreased to the support level of 103.80. The growth efforts have faced the sellers’ interest and are limited by the level of 104.10.

The support levels: 103.60 - 103.80, and the resistance levels: 104.10 - 104.30.

The MACD indicator is in a positive territory.

Trading recommendations

The decrease risks to the 103rd figure direction have been growing, but to confirm the downward correction resumption the pair needs to break through the support level of 102.70.