The dollar keeps growing | 11 September 2014

Euro

The France labor market statistics was released yesterday. The France non-farm sector has been unchanged. The index remained at 0.1 percent last month, as the economists expected. The euro/dollar fell to 1.2859, breaking through the support at 1.2890. Later, the pair managed to get back above the broken level, as well as above the 29th figure. Nevertheless, the pair closed the trade at the level of 1.2890.

The support levels are 1.2870- 1.2890, and the resistance levels are 1.2960 - 1.2980.

MACD is in a negative territory.

Trading recommendations

The "bulls" can try new tentative attempts to break above the resistance level of 1.2960. If successful, they will be able to test the resistance at 1.3010-1.3030. This level break will lead to the level of 1.3100 increase.

Pound

The pound quotations were supported by the July industrial sector steady growth by 0.5% and the Mark Carney’s statement to increase the rates in 2015. According to the trade balance the British government cannot reduce the economy dependence on domestic consumption and increase exports and investment. The current pound exchange rate shows the domestic demand indicators are likely to weaken in the future due to the national currency purchasing power deterioration.

The pressure on the GBP/USD was preserved and it decreased to 1.6060. There the pound was bought that allowed it to recover to 1.6130. Then it was able to move up to 1.6200 which reinforces the belief in the upward correction development.

The support levels are 1.6110 - 1.6130, and the resistance levels are 1.6200 - 1.6220.

MACD is in a negative territory.

Trading recommendations

The "bulls" need to break above 1.6200-1.6220. Then we can expect growth to 63rd figure. Until the Scotland referendum results the pound falling risks will be preserved.

Yen

The Japan published economy statistics could not provide the support for the yen. Thus, the Cabinet released the August consumer confidence index data which fell to 41.2 points against 41.5 in July. The bulls continued to advance, based on the Federal Reserve System monetary tightening expectations, the date of which can be announced already at the next meeting on 17 September.

The USD/JPY upward movement dynamics suggests the upward trend strength which will be continued in the short term.

The support levels: 106.50- 106.70, and the resistance levels: 107.20- 107.40.

The MACD indicator is in a positive territory.

Trading recommendations

We advise to consider the buy position with the target 107.20.