The market held awaiting the desicion about Greece | 11 February 2015

Euro

The pair euro/dollar made a new intraday low, apparently under the residue sentiment influence generated by the US employment data, but to "sleep" the pair returned to the opening prices of the day. The European news will show the December France and Italy industrial production. In general, the industrial production sector dynamics is positive as in the second and third Eurozone economy - France expected + 0.4% m/m, -1.0% y/y after -0.3% m/m, -1.2% y/y.Mr. earlier, and Italy + 0.1% m/m, -1.4% y/y vs. + 0.3% m/m, -1.8% y/y in November.

The pair euro/dollar consolidated after falling below the support level near 1.1320-1.1340. Decreasing below this level, the pair entered into the narrow range, limited by the levels of 1.1340 and 1.1300. The consolidation around 1.1340-1.1360 after a fairly US labor market strong data gives bulls hope for another recovery attempt.

The support levels are 1.1220-1.1240, and the resistance levels are 1.1340-1.1360.

MACD is in a negative territory.

Trading recommendations

The resistance near 1.1440-1.1460 might be tested soon. The loss of 1.1200-1.1220 will lead to a decrease towards 1.1100-1.1120. Fundamental factors suggest the latter option development.

Pound

The pair GBP/USD was no exception and showed the trade in the side corridor as well. The market’s attention will attract the December UK industrial production results. It is expected that the report can testify the year decrease - in total industrial production with + 0.8% y/y after + 1.1% y/y and the manufacturing sector with + 2.0% y/y vs. + 2.7% y/y in November. Now the pair fell to the support around the 52nd figure and is traded within the range between the support level of 1.5200-1.5220 and the resistance near 1.5280-1.5300.

The support levels: 1.5200-1.5220 and the resistance levels: 1.5280-1.5300.

The MACD indicator is in a positive territory.

Trading recommendations

The pound has to consolidate above 1.5200-1.5220 and overcome the resistance near the levels of 1.5280-1.5300 to resume its recovery. The loss of 52nd figure will lead to a reduction towards 1.5140-1.5160. This support breakthrough will open the way to 1.5080-1.5100.

Yen

The pair dollar/yen also did not show an increased activity. However, an advantage is still on the side of the Japanese yen and the previous day was finished with a growth. The Japan news announced the services sector activity index reduction by 0.3% m/m in December against + 0.2% m/m previously as well as a small the money supply contraction in the first month of this year – the M2 aggregate showed 3.4% y/y after 3.6 % y/y in December and the M3 aggregate showed 2.8% y/y in November against 2.9% y/y.

The pair dollar/yen decline was limited by the support near 118.15-118.35. It shows a positive trend, having grown above 119.25 at the moment.

The support levels: 119.05-119.25, and the resistance levels: 120.20-120.40.

The MACD indicator is in a positive territory.

Trading recommendations

The resistance testing around 119.25-119.45 breakthrough opened the way to 120.20-120.40. Its growth above this level will signal about the uptrend resumption. The loss of 119.05-119.25 will call into question the dollar ability to continue its growth.