The market shows a low volatility | 23 April 2014

Euro

The euro came under pressure and completed the trading with a negative result versus the dollar. The positive U.S. economic reports caused the euro sales. There was no economic news from the euro zone denying the euro with the support.

The forecasts suggest an optimism growth which may increase the index from -9.0 to -9.3. This week main news we expect today when we manufacturing indicators preliminary estimates and the leading countries’ in the bloc and the euro zone’s service areas in April will be published.

The support levels are 1.3720 - 1.3740, and the resistance levels are 1.3810 - 1.3830.

MACD is pointing down, indicating the current downtrend.

Trading Recommendations

The pair was traded in a range, limited by the support level 1.3790 and the resistance level 1.3864. Recently the support was tested, but the price could not move below. As an alternative the pair may decrease to the support near 1.3720. Still we should not exclude its attempts to grow up to the 39th figure and use this opportunity to open the short positions.

Pound

The British economy packet data which will appear in the week, can continue to send good economic statistics and thereby add the popularity to the British currency. The forecasts expect the positive dynamics in the March retail sales, the industrial orders from the Confederation of British Industry (CBI), as well as reducing public sector borrowing.

The pair found the support at 1.6683, from which it can rise up to the level 1.6820, overcome it and test 1.6842. The demand is saved on the falling to 1.6774. The pair keeps trying to return to the current maximum.

The support levels are 1.6780 - 1.6800, and the resistance levels are 1.6860 - 1.6880.

MACD is pointing up, indicating the current corrective movement rates.

Trading Recommendations

Despite the long positivity for the pound, its ability to continue to grow up and advance substantially above is doubtless. If the correction continues the price can get to the 1.6700-1.6660 area.

Yen

The Japan trade balance data for March pressured the yen. The deficit amounted to 1.45 trillion. It was much worse than traders expected - 1.08 trillion yen.

However, the yen strengthened which could probably be caused by the situation on the stock market in Japan, where there is another Nikkei decrease. As for the future, the yen position will largely depend on the Japanese companies’ reports during the past fiscal year in March which will start to arrive later this week.

The support levels: 102.16 - 102.30, and the resistance levels: 102.60 - 102.80.

MACD is pointing up, indicating the current uptrend.

Trading Recommendations

The 102nd figures loss again lead to testing support at 101.59, but the yen must break below 101.22 for the larger correction development. The growth above 103.00-103.40 may mean the uptrend resumption.