The GBP/USD keeps falling to the 10-month low | 10 September 2014

Euro

There are no any important Eurozone statistics publications planned. The July France foreign trade results report is expected with the deficit reduction to $5 billion euro from -5.4 billion. But it will not cause any market emotions. The negative sentiment towards the euro remains the main market driver, but the technical factors signal about the fall stopping probability. Due to the pound fall the euro/dollar was traded persistently above the support around 1.2890.

The support levels are 1.2870- 1.2890, and the resistance levels are 1.2960 - 1.2980.

MACD is in a negative territory.

Trading recommendations

The euro fell to support near 1.2890, which the "bears" are trying to overcome. In the case of the breakthrough we should expect the fall to 1.2780-1.2800 where the "bulls" can possible be activated.

Pound

The UK news package is rich for the interesting information. It is expected that the July industrial production and its manufacturing sector release increased by 0.3% m/m, and the trade deficit in the same month fell to -9.3 billion against -9.4 billion pounds earlier.

The pound/dollar inglorious march continues in the south direction. The British currency has carried out an unsuccessful attempt to recover. The pound is under pressure, the "bears" were forced to go below the support level of 1.6130. It was broken and the "bears" can test the level of 1.6040.

The support levels are 1.6020 - 1.6040, and the resistance levels are 1.6130 - 1.6150.

MACD is in a negative territory.

Trading recommendations

The nearest target is the level of 1.5960, where the "bulls" can return to the market. Nevertheless, the bounce up at this stage should be used as an opportunity to open the short positions at the best quote.

Yen

They made rigid enough reproves to the BoJ head, that he should focus more on the monetary policy and don’t interfere in matters related to the consumption tax, as it is the government prerogative. Obviously, this indicated about the serious disagreements among the Japanese top management and even more set the market against the yen. The dollar/yen opened new horizons as the pair despite the overbought managed to breakthrough the past few years high at the level of 106.30. Theoretically, this should mean the increased upward impulse.

The support levels: 105.60- 105.80, and the resistance levels: 106.30- 106.50.

The MACD indicator is in a positive territory.

Trading recommendations

The immediate "bull" target is the resistance around 107th figure. The dollar is overbought and not only against the yen, so you should carefully buy.