The EUR/USD recovered after PMI release | 19 December 2014

Euro

The European currency fell against the dollar. Of course, the Janet Yellen’s, the head of the Fed, statements and the press conference, was the reason for the pair decrease. Another main factor of pressure was the ECB sentiment reports. However, the euro sales started even before the US release and provoked the ECB Governing Council B. Ker quite clearly statements that the European regulator intends to begin large-scale assets acquisition at the beginning of the next year, mainly government bonds.

The EUR/USD inability to consolidate above the previously 25th figure breakthrough is a negative factor for the pair that confirmed its decrease to the 24th figure and then to 1.2250-1.2270.

The support levels are 1.2250-1.2270, and the resistance levels are 1.2350-1.2370.

MACD is in a negative territory.

Trading recommendations

Now the support around 1.2250-1.2270 testing is more likely and its breakthrough will open the way to 1.2180-1.2200. Nevertheless, we cannot exclude another profit-taking wave within the dollar. The confident breakthrough of 1.2500-1.2520 will confirm the larger upward correction development.

Pound

The main events for the pair GBP/USD were the US reports about the Fed intentions to keep policy tightening under which the US interest rates can be raised in the first quarter of the next year. The announced Committee meeting minutes about the Bank of England monetary policy gave information within the forecasts - as before voting rates, two members of the committee were in favor of their increase, but other seven members were for their preservation.

The bulls’ attempts to consolidate above 1.5730-1.5750 were unsuccessful and once again being in the bears’ power, the pound with the dollar broke through the support near 1.5580-1.5600 and rebounded upwards. The pair broke through the resistance level of 1.5650-1.5670. The support levels are 1.5630-1.5650, and the resistance levels are 1.5730 - 1.5750.

MACD is in a negative territory.

Trading recommendations

To resume the upward correction the pound may rise up and consolidate above 1.5730-1.5750.

Yen

The Japan stock market recovery supported the US dollar, and later, expectations of the Fed meeting results and the board messages supported the dollar. As a result, the yen fell against the dollar and returned it to the previous trading day earnings. Yesterday the US dollar rose against the Japanese yen. As the result of growth there was broken through the resistance near 118.15-118.35 and the pair rose up to the level of 119.25-119.45.

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

The MACD indicator is in a neutral territory.

Trading recommendations

The resistance level of 119.25-119.45 holds back the bulls’ onslaught and while it is trading below the risks of resumption will be preserved. The growth above the level significantly will weaken them, but bulls still have to fight for the psychological level of 120.00-120.20.