The euro started the week from a new low | 10 November 2014

Euro

The pair EUR/USD slightly grew at the end of the last week. Earlier the euro has fallen to the level of 1.2350 – the low for more than two years. The dollar has again risen. The US dollar was supported by the stronger initial jobless claims data that reflected their reduction.

There has been created 235,000 new work places in the world's largest economy in comparison to the last year average growth rate of 226.670. At the same time the unemployment rate is likely to remain at the level of 5.9%. The ECB left rates unchanged at the level of 0.05%. The pair fell to the level of 1.2330-1.2350 and then rebounded to the resistance level of 1.2425-1.2445. The euro closed the week above this level.

The support levels are 1.2405-1.2425, and the resistance levels are 1.2500-1.2520.

MACD is in a negative territory.

Trading recommendations

The growth attempts should be used for short positions opening in the long term. The possible growth targets might be the levels of 1.2480-1.2500 and 1.2580-1.2600.

Pound

The pair GBP/USD grew. Earlier the pound was trading near the low of 1.5800-1.5820 after the Bank of England signaled about the British economic slowdown and kept the interest rate unchanged at the level of 0.5%, but the bond purchases program in the amount of 375 billion of British pounds. The gross domestic product growth (GDP) in the 3rd quarter slowed to 2.8% against 3.7% in the 2nd quarter.

The pound/dollar situation has significantly deteriorated as the pair broke through the support level of 1.5850-1.5870 and fell to 1.5780-1.5800 from which it rebounded upward.

The support levels are 1.5780 - 1.5800, and the resistance levels are 1.5870 - 1.5890.

MACD is in a negative territory.

Trading recommendations

The downward trend is gaining momentum and the bears’ target can become a support around 1.5780-1.5800. The pair is showing the oversold signs that are not the sales reason.

Yen

The Bank of Japan increased its annual asset purchases to 16% from the country’s GDP from 12-14%. The Bank of Japan balance sheet has now reached around 57% of the annual GDP. The US economic data was scarce, but they were on the dollar side - the number of initial jobless claims fell immediately by 10 thousand last week while we waited significantly less positive data, only two thousand. The US dollar was again sold off for the Japanese yen on the rebound to the support level of 114.00-114.20 so the pair returned to the resistance level of 115.25-115.45 that continues to resist the bulls’ attack.

The pair rebounded back to the support level of 114.00-114.20. The negative sentiment against the yen is still preserved.

The support levels: 114.00-114.20, and the resistance levels: 115.25-115.45.

The MACD indicator is in a positive territory.

Trading recommendations

The dollar/yen is quite sensitive to the US labor market data, their released is usually followed by the volatility spikes, therefore, regarding the existing risk of the correction downwards, we should not rush to buy the pair at the current levels.