EUR/USD still can rise | 21 March 2014

Euro

Prior to the announcing of the FOMC meeting results the euro/dollar continued to trade in a narrow range. After the meeting results were announced, the pair began a rapid fall as a result of which it has overcome the current lows at 1.3833 and tested 1.3809 mark. Here the demand for euro remains, which enabled it to revert to the level 1.3843, in the area which is the resistance now.

The support level is 1.3810-1.3772, and the resistance level is 1.3833 -1.3892.

MACD is pointing down, if the indicator unfolds the top, it may be the beginning of an upward correction.

Trading Recommendations

Nevertheless, despite the likelihood of decreased towards 1.3720 level, to talk about the end of the uptrend is still early, and only the breakdown of this level would be the proof of that.

Pound

In the absence of interesting reports from the UK the investors in the first half of the day will be closely watching for the dynamics of the trading on the stock exchanges, as well as for cross-rate EUR/GBP. The day before, after the positive employment data closure of long positions in the cross- course was observed, which is very favorable for the British currency versus the U.S. dollar. Demand for the U.S. dollar after the FOMC meeting and continue today that will make a negative factor for the pair GBP / USD.

Support levels: 1.6515 - 1.6464 and resistance levels: 1.6582 - 1.6639 .

MACD goes down if the indicator unfolds upward, it could signal the beginning of a correction.

Trading Recommendations

The kickbacks are now limited to the resistance at 1.6554 where the sellers’ interest is kept. The immediate bears’ targets are 1.6400, 1.6303 and 1.6252. The attempts to grow to the 66th figure should be used to open short positions.

Yen

The latest report on the trade balance shows that the problems of exporters still has the negative factor for the economic growth, as Japan - the country of the exporter. On the eve the Japanese regulator representative Kuiti said that the increase in consumer prices was largely provided by the weak yen over the past year. In the lights of this, we can expect a further Japanese currency weakening in the long term.

The support level is 102.16 - 101.66, and the resistance level is 102.82 - 103.43.

MACD is sent up.

Trading Recommendations

Theoretically, a growth above 102.00 should improve an outlook, but as long as it trades below 102.83-103.00, the risks of a renewed decline will be continued. Now the drop below 101.59 would confirm the development of a long-term downward correction, and the rise above 103.00 confirms the resumption of the uptrend.