The majors prefer to wait | 19 March 2014

Euro

ZEW Institute published a report by the index of business optimism in Germany in March in the midst of the European trading session. The last two ZEW institute releases came out worse than it was expected by the market participants, indicating the negative trend of the locomotive business climate in the Eurozone.

In the light of this background, we can expect the "bears" activity who try to push quotes pair euro/dollar to the support level 1.3833. The support level is 1.3833 - 1.3810, and resistance level is 1.3892 - 1.3914.

MACD is pointing up, indicating the current uptrend.

Trading Recommendations

The bulls on the euro/dollar don’t stop attempts to test the psychological level of 1.4000. An overall prospects for the euro/dollar look constructive. There is no need to talk about an oversold, so the growth to 1.4000 is possible.

Pound

The UK will not please the investors with the publication of interesting reports. The development of range trading is expected. After the January slump - in February the market participants are expecting an improvement in the real estate market in the United States.

The employment growth in non-farm payrolls in February, in conjunction with the increase in the average hourly wage can give good reports. The inflation data can be expected at the level of the median forecasts, as there are no preconditions for the rise in prices.

The support level is 1.6582 - 1.6515, and the resistance level is 1.6639 - 1.6667.

MACD sent up signals now the current upward price movement if the indicator will unfold down, it can attest to the completion of upward correction .

Trading Recommendations

The GBP/USD continues to trade above 1.6600, which preserves constructive outlook for the pair. The last fall to this support has attracted interest in the purchase, and the pound rose up to 1.6665.

Despite the positive attitude, the risks of falling below 1.6600-1.6585 still look high.

Yen

In the absence of interesting reports from Japan, the investors will be closely watching the situation on the geopolitical front and the dynamics of trading on the stock exchanges. Imposing economic and political sanctions against the Russian Federation from the countries participating in G- 7 could trigger a new round of sales on the stock markets, which will put pressure on the pair USD/JPY. The States will publish reports on the real estate sector and inflation.

Support levels: 102.16 - 101.77, and resistance levels: 102.82 - 103.43.

MACD is pointing up, indicating the current uptrend.

Trading Recommendations

Yesterday, the dollar/yen corrected after last week's decline. The restoration of the special scale was different and not limited by 101.94. If the bulls can defend the support, then they will be able to return a couple on a growth path.