The Euro keeps falling | 12 June 2014

Euro

The bears "completely control the situation in the euro/dollar pair as the external and internal environment is not conducive to the single currency strengthening. EU and the U.S. will not please investors with the important macroeconomic reports publication.

The euro/dollar fall was continued. An attempt to rise above the 36th figure was unsuccessful. After testing 1.3601 the "bears" showed themselves again, and the pair fell to the 1.3535 support area. In the Asian session it tested the mark 1.3521, from which the EUR/USD rebounded to the resistance near 1.3545.

The support levels are 1.3535- 1.3560, and the resistance levels are 1.3590- 1.3600.

MACD is in negative territory. The histogram is descending.

Trading recommendations

The pair shows some oversold signs, so correction towards 1.3580-1.3600 should not be excluded, but attempts to growth should be used to open the short positions.

Pound

The national statistics office will publish the UK labor market in April today. The leading indicators point to a decrease in unemployment - retail sales showed an increase by 1.5%, which confirms the increased consumer confidence. The employment applications level of unemployed was 0.1% in the second month of the spring decrease.

Level 1.6830 shows the resistance again from which it fell to 1.6742 the other day. In the Asian session, "bears" tested the 1.6737, after which the pound tried to recover, rising to 1.6770.

The support levels are 1.6770 - 1.6790, and the resistance levels are 1.6830 - 1.6850.

MACD histogram is descending thus giving a sell signal.

Trading recommendations

The traders’ mood remains negative, although a pullback towards the 68th figure is quite possible. The "bears" can test the 67th figure in the short term.

Yen

The market participants will focus on the BSI index of business conditions for large manufacturers release. This indicator is always closely monitored by the investors. The Blomberg Economists expect the increase in the index to the level 14.1. Against this background, we can expect the Japanese yen moderate strengthening to the 102.00 support level.

The support levels: 120.00-102.10, and the resistance levels: 102.30 – 102.40.

The MACD is above the zero line and decreasing confirming the current southern movement.

Trading recommendations

The pair was between the support near 102.00 and the resistance at 102.30 yesterday. The pressure on the dollar persists, and with it the risks of testing 102nd figure, a break of which will lead to the drop to 101.59. The outlook is still negative, the price needs to overcome the resistance at 102.80-103.00 to improve prospects for the dollar.