The EUR/USD may return to sales soon | 26 March 2015

Euro

The euro tried to continue its growth against the dollar at the previous trades. The March German Ifo Institute report was expected with the indicators’ improvement – the business sentiment was anticipated with a growth to the mark of 107.3 after the previous 106.8. The indicator went better than expected and amounted to 107.9 in March.

The pair EUR/USD tested the psychological level of 1.1000-1.1020, but bulls failed to break through and consolidate above this level. Traders did not have a desire to buy above 1.1000-1.1020 and the pair, being under pressure, declined to the support near 1.0880-1.0900. Then the pair rebounded upwards and tested the level of 1.1000-1.1020 again.

The support levels are 1.0880-1.0900, and the resistance levels are 1.1000-1.1020.

MACD is in a positive territory.

Trading recommendations

As long as the pair is above the level of 1.0880-1.0900 there is a possibility that the pair may test the level of 1.1000- 1.1020 again. The support loss may lower the pair towards 1.0750-1.0770. The sure level of 1.1000-1.1020 breakthrough still looks unlikely.

Pound

The pound was the most vulnerable assert against the dollar at the previous trades. At the end of the day the pound recorded the biggest losses against the US dollar as compared to other majors. According to the UK report the February number of jobless claims has grown to 37,300 from 36,500. The Bank of England Monetary Committee member Shafik said that interest rates were likely to be increased, but not decreased, despite the current low inflation level. Shafik said that inflation below 2% was caused by the mostly external factors that had temporary nature: the import prices and the oil prices sharp decline as well as the pound growth.

At the last session there were no changes with the pound/dollar. Bulls could not even test the psychological level of 1. 5000-1.5020 as sellers became active, leading to the pair’s decrease below the level of 1.4880-1.4900. The price slightly rose and tested this level, but unsuccessfully.

The support levels: 1.4750-1.4770 and the resistance levels: 1.4900-1.4880.

The MACD indicator is in a neutral territory.

Trading recommendations

The risks of the pair decrease resumption and the current support break are rather high. Shall that happen we expect a decrease towards the 47th figure. The pair ability to rise up and consolidate above the 49th figure will increase chances of 1.5000-1.5020 testing and breakthrough that is currently very uncertain.

Yen

The Japanese yen held the previous session in multidirectional fluctuations against the dollar and closed the session almost at the opening prices. The Japan news showed one of the inflation indicators decrease- the February corporations’ price index slowed growth and fell to 3.3% y/y from 3.5% y/y. The pair USD/JPY was sold off during its decline towards the support near 119.05-119.25 and then the pair rose. The increase was short-term and the pair again tested this level.

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

The MACD indicator is in a negative territory.

Trading recommendations

While the pair is above 119.05-119.25, the chances of growth resumption and the 120th figure breakthrough will be preserved. The loss of this support will open the way towards the 116th figure.