Experts expect the American economy steady growth | 14 October 2014

Euro

The euro grew yesterday. The dollar could return some of its lost ground – USDX ended the last week at 85.81. The pair fell by 0.5% as investors flew the risky assets. At present, we should expect the side trend amid the empty macroeconomic calendar. The bond market also shows a neutral background and traders will not hurry to open positions. Since the beginning of the new trading week, the euro showed a positive dynamics, rising to the 27th figure where it was under pressure and rebounded to the level of 1.2660. At the present the background is neutral.

The support levels are 1.2640 - 1.2660, and the resistance levels are 1.2730 - 1.2750.

MACD is in a neutral territory.

Trading recommendations

While the current support holds back the bears’ efforts, the retest chances of the 27th figure are preserved. Its breakthrough will return the pair back to the resistance near 1.2800. The loss of 1.2640-1.2660 will lead to the support around 1.2560-1.2580.

Pound

The UK inflation and employment reports are important week events. The inflation expectations decreased amid the "black gold" sales in September that is a strong inflationary component. The UK bond yields continued to show their weakness which is a negative signal for the pound sterling. Last week, the pair showed the low liquidity, so we do not have to speak about the further pound rise.

The support levels are 1.6020 - 1.6040, and the resistance levels are 1.6130 - 1.6150.

MACD is in a neutral territory.

Trading recommendations

The consolidation above the resistance near 1.6130 would give the opportunity to test resistance around 1.6200, its breakthrough will lead to the highs at the level of 1.6300. Inability to rise above the level of 1.6130 will increase the pressure on the pound and will result in decrease to the level of 1.5960.

Yen

We should expect a side trend development during the day amid the US and Japan state holidays. The liquidity will be significantly reduced and therefore traders will not rush to open positions. The American and Japanese stock futures ended the trading day in the "red zone" that is a negative factor for bulls within the pair USD/JPY. The USD/JPY has broken through and fixed below the strong support level of 107.80. The bears took control over the situation.

The support levels: 107.00-107.20, and the resistance levels: 107.80-108.00.

The MACD indicator is in a negative territory.

Trading recommendations

The potential price decrease targets are the levels of 106.70, 106.30.