The EUR/USD reached the 5-day maximum | 28 January 2015

Euro

The "Syriza" party victory report in the Greece parliamentary elections caused a reflex reaction to the trades opening as a result the euro decreased against the dollar to the new low. However, the European currency could quickly rise, ending the day with a profit. Our attention will be drawn to the European finance ministers’ board meeting where, apparently, Greece issues will be discussed.

The pair EUR/USD started trades with a fall to the level of 1.1200-1.1220 where there was some interest in profit-taking and against which the pair recovered above the level of 1.1320-1.1340 that provides the support at this stage. Undoubtedly, this increase is merely corrective, so the risks of renewed decrease and the lows testing are still preserved.

The support levels are 1.1320-1.1340, and the resistance levels are 1.1440-1.1460.

MACD is in a negative territory.

Trading recommendations

The support breakthrough around 1.1200-1.1220 will open the way to 1.1100-1.1120 where the bulls’ activation is possible. The resistance of 1.1440-1.1460 breakthrough will lead to the pair growth towards 1.1520-1.1540.

Pound

The British pound was not affected by the political news. The pair has increased and found the strong support at the technical levels. The investors’ attention will be focused on the preliminary GDP assessment for the 4th quarter. It is assumed that the main economic indicator will show growth by 0.6% q/q after + 0.7% q/q in the previous quarter, indicating the recovery processes stability.

Despite the weekly close below the support around 1.5020-1.5040, the pair pound/dollar have showing a positive attitude since the beginning of this week. The pair managed to return back above 1.5020-1.5040 and rise up to the resistance to the 51st figure. Then the pair tested the resistance level of 1.5220-1.5240. The oversold pair creates upward correction risks, but we cannot speak about a more ambitious pair recovery.

The support levels: 1.5140-1.5160 and the resistance levels: 1.5220-1.5240.

The MACD indicator is in a positive territory.

Trading recommendations

Bears can again test the low at the level of 1.5020-1.5040; they need to break through the support near 1.5140-1.5160 and the level of 1.5080-1.5100 to achieve this target. It is possible the pair consolidation above 1.5140-1.5160 for some time. The resistance breakthrough near the 52nd figure will lead to the pair increase to the 53rd figure.

Yen

Attitude towards the pair dollar/yen was more ambiguous than in other dollar confrontations. The US dollar strengthened steadily and finished the day with a profit. The corporation price index remained at the same level of 3.6% y/y in December, as expected, and the small business confidence indicator fell much more in the negative territory to 46.3 from 46.7 in January.

The pair dollar/yen recovered after falling to the support around 116.95-117.15. Its recovery was limited by the resistance near 117.95-118.15. The pair could not fixate above this level and fell below it.

The support levels: 116.95-117.15, and the resistance levels: 118.15-118.35.

The MACD indicator is in a neutral territory.

Trading recommendations

The pair inability to rise up and consolidate above the resistance at the mark of 118.15-118.35 keeps the bears’ chances for the downward correction resumption and they will have to overcome the current support to achieve this target. The resistance around 118.15-118.35 breakthrough will lead to a growth to 119.25-119.45.