The euro keeps its further falling | 23 September 2014

Euro

We have got a consumer confidence release from the euro zone for September, as well as the US housing sales in the secondary market. With regard to the first report there can be expected the data issue on the level of the forecasted median. The second report also may coincide with the market participants’ expectations, showing an increase compared to the previous month. The sales in the secondary housing market have been growing for 4 months in a row and we can expect the positive dynamics.

At the beginning of the week the price on the euro/dollar was able to consolidate under the level of 1.2890, where the interest on sales is still present. In general, the pair looks heavily oversold, so the support around 1.2780-1.2800 will be able to hold off the bears.

The support levels are 1.2780- 1.2800, and the resistance levels are 1.2890 - 1.2910.

MACD is in a negative territory.

Trading recommendations

For the upward correction development the single currency needs to overcome the resistance level of 1.2890 and consolidate above this level. In this case, it will be able to test the resistance level of 1.2960, the break up of which would weaken the bearish impulse.

Pound

The UK will not please the traders with the interesting published reports. The US sales release in the secondary market can meet the market participants’ expectations against the consumer confidence improvement in August, as well as the positive trend in the real estate sector. As we observe a strong decline in quotations of the "black gold” in September, the CPI will be under a pressure, which will hold the bulls to open a large number of the long positions. The single European currency and the British pound in the pair with the USD started a new trading week on a positive note, although the last week ended unsuccessfully for them.

The support levels are 1.6280 - 1.6300, and the resistance levels are 1.6370 - 1.6390.

MACD is in a positive territory.

Trading recommendations

The current upward movement target is the level of 1.6450, but longs are not recommended. In the case of this target overcoming the new target will be the level of 1.6550.

Yen

The traders will partially take profits from the long positions amid the empty macroeconomic calendar. The world's leading stock markets finished the last week by a strong growth, which is also a positive factor for the USD/JPY. The US retail sales release can support a moderate demand for the dollar and against this background we should open the "longs" from the support level and take profits from the resistance level. The dollar rose against the Japanese yen to the level of 109.45, before reaching a probable bulls ‘goal 110.00. Now the dollar has a support at the level of 108.70, where the buying interest is preserved. Currently the pair is being traded near the 109th figure, without being able to determine the further movement direction.

The support levels: 108.50-108.70, and the resistance levels: 109.20- 109.40.

The MACD indicator is in a positive territory.

Trading recommendations

The uptrend remains in force and is in its active phase, but the dollar is showing the overbought signs, which increases the downward correction risk. It can happen both at current levels and after the level of 110.00 testing.