The EUR/USD is still under pressure | 01 Agosto 2014

Euro

The Euro continues the consolidation against the dollar. The euro/dollar traded higher by 0.03%, close to 1.3470.

The International Monetary Fund lowered its forecast for the global economic growth in 2014 from 3.7% in the April report to 3.4%.

Trading recommendations

In case of breaking the support level of 1.3430 we advise to short with the target at the levels of 1.3400 and 1.3375.

Pound

The level below 1.7000 reflects the dollar recovery degree in July as well as more restrained reaction to a possible rate growth CBA prospects this year. The weak retail sales also exerted a downward pressure on the British currency. We will focus on the UK GDP data which plans to grow by 0.8% in the first reading for the second quarter. The stronger data can provide the necessary support for the pound to overcome the level of 1.7000, however, this process may be unstable due to the ongoing dollar growth.

Trading recommendations

We advise to sell orders with the target 1.6950. In case of the target breakthrough, the new target is at 1.6860.

Yen

The dollar against the yen is close to the two-week high, as euro rose from an eight-month low against the dollar after the data publication showed the U.S. and EU economy improvement. The dollar against the yen fell on 0.04 percent to 101.80 yen, after rising to a two weeks peak level of 101.86 due to the post on reducing the applications for the initial jobless claims number in the U.S. to its lowest level since early 2006. The dollar is likely to grow by 0.4 percent against the yen over the week.

Trading recommendations

We advise to consider sell orders with the target 102.10. In case of target breakthrough, the new target locates at 102.40.