The euro returned under pressure and is decreasing | 11 November 2014

Euro

The euro has fallen against the dollar. The market’s attention will be focused on the preliminary Germany, France and Italy GDP data and the all euro area. The forecasts suggest that besides Italy where we expect the reduction continuation -0.1% q/q, the main economic indicators will record the increase by 0.1% q/q that will certainly not be a cause for our optimism. The pressure on the euro/dollar was preserved. The euro sales have led to its fall to the fresh lows at the level of 1.2330-1.2350. After its testing the pair corrected to 1.2500-1.2520 and the new week began with a fall to 1.2405-1.2425.

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 pair has to overcome the levels of 1.2500-1.2520 and 1.2580-1.2600 and to rise and consolidate above it. Otherwise, the renewed decline risks will be preserved; the loss of the support level of 1.2405-1.2425 will lead to the decrease to 1.2330-1.2350.

Pound

The pound slightly fell yesterday. The British pound has risen against the dollar, though its growth was not as vigorous as the euro rise in regard with the UK weak economic reports at the end of the last week. The central event of this week will be the Bank of England's inflation report and M.Karni speech at the press conference during this document presentation.

The renewed pound sales led to the support level of 1.5850-1.5870 breakthrough.

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

With the start of the new trading week, the pair fell but it is necessary to go back above the level of 1.5870-1.5890 for the upward correction continuation. Otherwise the pound again takes risks to lose the support at the mark of 1.5780-1.5800 and fall to the 58th figure.

Yen

The yen has fallen at the yesterday trades. Earlier the US dollar has declined within the pair USD/JPY. The dollar sales for the yen began in connection with the pessimistic US labor market reports and the overbought dollar. The most interesting will be the message about the situation of the Japan external relations this week. It is assumed that the current account surplus will increase in September to 536.1 billion from 287.1 billion yen and the trade balance has remained in deficit, however, was slightly less -782.5 billion. vs. -831.8 billion yen in August.

Last week the pair broke through the resistance near 114.00-114.20 and then tested the level of 115.25-115.45. After the economic news release the pair fell below 114.00-114.20. The pair increased on Monday trades. 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 pair can fall to 113.10-113.30 in the short term, but the upward trend within the dollar will be in force in the long term that keeps the risks of the renewed pair growth towards 116.25-116.45.