The EUR/USD started a correction | 05 August 2014

Euro

In the absence of important macroeconomic statistics from the EU and the U.S. we should expect the sideway trend development. The key event of the week, the ECB meeting is still ahead and the traders do not rush with the positions opening.

The pair found the support at 1.3375, bounced from it and broke the resistance around 34th figure and rose to 1.3420. The euro "bulls" had not enough enthusiasm to overcome the resistance at 1.3480 and the pair is back below 1.3420.

The support levels are 1.3400- 1.3420, and the resistance levels are 1.3480 - 1.3500.

MACD is in a negative territory.

Trading recommendations

In fact, the attempts to increase do not change the total deals, namely the single currency downward trend development. We do not exclude the rebound towards 1.3480 and 1.3535.

Pound

The traders’ attention will be focused on the UK construction sector PMI index data publication. We can expect the data release slightly better then the median forecasts that will contribute to partial profit taking on the short positions.

The GBP/USD is consolidating after falling to 1.6810. Less strong than expected employment report in the U.S. provoked its jump to 1.6850. However, there remained an interest to buy and soon the British again traded below the broken resistance level of 1.6850.

The support levels are 1.6830 - 1.6850, and the resistance levels are 1.6900 - 1.6920.

MACD is in a negative territory.

Trading recommendations

The pressure on the British currency is preserved and with it the falling to 1.6785 risk, but the oversold emerged as a result of the fall increases the bounce higher risk - towards 1.6900 and 1.6980 where we should consider a short positions opening.

Yen

The sales at the world's leading stock markets that we saw last week cooled down the dollar/yen bulls. When we do not have the important macroeconomic statistics bulls will continue to take profits on long positions and we expect the downward trend in the pair.

The break through the resistance level of 102.00 strengthened the upward momentum, so the dollar/yen was able to grow and to test 103.08. However, the data on the U.S. labor market are somewhat disappointing for "bulls" which led to its decline to 102.30.

The support levels: 102.10- 102.30, and the resistance levels: 102.70- 102.90.

The MACD indicator is in a positive territory.

Trading recommendations

The renewed growth risks are preserved. The inability to overcome the 103rd figure and 102.20-102.00 loss could mean the downward correction resumption.