The dollar is under pressure after Draghi's positive report | 17 April 2015

Euro

The euro received support after the quite optimistic ECB president M. Draghi’s statements at the press conference where they discussed the monetary policy prospects and the euro was supported by the less US encouraging economic data. The Germany and France consumer prices increased in March according to the consumer price indices latest assessment (CPI), but the euro area exports increase contributed to the trade surplus growth in February, bringing the surplus to 20.3 billion euros against 14.4 billion euros in February 2014.

The bulls are still trying to bring the situation under their control. Having bought the pair on its decline to the support near 1.0500-1.0520, they again tested the resistance near 1.0630-1.0650. This level was broken through that led to the pair’s growth towards 1.0770-1.0790. After this level first testing there was a rebound to the support around 1.0610-1.0630. Then the pair increased to the resistance 1.0770-1.0790 again.

The support levels are 1.0610-1.0630, and the resistance levels are 1.0770-1.0790.

MACD is in a neutral territory.

Trading recommendations

The euro needs to consolidate above 1.0770-1.0790 for its resumption continuation; otherwise we should expect the pair reduction to 1.0610-1.0630.

Pound

The main reason for the pound purchases was the US news that pointed out to the slow recovery processes in the world largest economy. The UK housing market prices balance report by RICS showed an increase to 21% in March from 15% in February while it was expected the previous level of 15%. Uncertainty, associated with the UK upcoming elections, is a deterrent.

Having rebound from the resistance near the 48th figure, the pair GBP/USD tested the support near the 47th figure where it was sold off which led to the level of 1.4770-1.4790 re-testing. At this time the level was broken through and the pound rose above the resistance near 1.4900-1.4920.

The support levels: 1.4880-1.4900 and the resistance levels: 1.5000-1.5020.

The MACD indicator is in a neutral territory.

Trading recommendations

Having consolidated above 1.4880-1.4900, the pound can test the psychological level of 1.5000 in the short term and its breakthrough will significantly improve its prospects. Loss of the 47th figure will signal about the downtrend resumption.

Yen

The Japanese yen is consolidating. Probably, the levels to which the pair dollar/yen decreased were considered attractive for purchases as the market sentiment remains on the US dollar side in terms of the Fed and BoJ multi-directional policy. Earlier, the yen was again supported by the US statistics which showed the economic indicators weakness. The Japan news announced the equipment orders increase up to 14.9% y/y from 14.6% y/y in March.

The pair USD/JPY was unable to return above 120.00-120.20. The pair again was sold off on the rebound towards 119.05-119.25 which led to the pair decline below this level.

The support levels: 117.95-118.15, and the resistance levels: 119.25-119.45.

The MACD indicator is in a negative territory.

Trading recommendations

The dollar inability to consolidate above the 120th figure increases the decrease risk towards the 116th. The support breakthrough around 117.95-118.15 will allow bears to test the support near 116.80-117.00. Its growth above 120.00-120.20 will weaken the bearish pressure.