The dollar keeps strengthening to the majors | 02 October 2014

Euro

Macroeconomic data continues to disappoint the euro area traders. On the eve, there were sales in the foreign exchange market that points out to the investors’ escape from the risky assets. It is difficult to expect the positive data from the US macroeconomic releases amid the American economy moderate slowdown in the third quarter. The EUR/USD consolidates. The pair dropped to the level of 1.2580 and started the consolidation.

The support levels are 1.2560 - 1.2580, and the resistance levels are 1.2660 - 1.2680.

MACD is in a negative territory.

Trading recommendations

In the short term the pair will possibly fall towards the level of 1.2500, but it is still heavily oversold and the upward correction is expected in the pair at any time.

Pound

The British currency is under pressure amid the negative macroeconomic statistics. The UK manufacturing PMI shows a decline two months in a row, it is possible to expect the negative trend continuation. The September CBI leading indicators showed the rate decline. The British pound continues to be sold out against which it fell below the level of 1.6200. Te pair is consolidating.

The support levels are 1.6110 - 1.6130, and the resistance levels are 1.6200 - 1.6220.

MACD is in a negative territory.

Trading recommendations

The support breakdown will lead to the decline to 1.6020-1.6040. The pound needs to return back and consolidate above the level of 1.6300 for easing the downward pressure. The GBP/USD is not oversold, but there are no objective reasons for its sales at the moment, so the risks for an upward correction are very much alive.

Yen

The bulls still control the market, despite the consumer confidence negative release from the Conference Board and the US and Japan stock markets reduction. The bond market trends point to the bullish trend continuation in the global markets shares that will ultimately support the demand for this currency pair. The US employment data from ADP will be published soon which may affect the pair dynamics. A weak report will put pressure on the dollar. The bulls tested the psychological level of 110.00. They managed to push the dollar to the mark of 110.08 and after testing that the dollar dropped to 109.20.

The support levels: 109.00-109.20, and the resistance levels: 110.00-110.20.

The MACD indicator is in a positive territory.

Trading recommendations

Still falling the dollar continues to be bought out, but its overbought may cause profit-taking which will lead to the dollar decrease continuation.