The pound is targeted to 1.5200 | 09 Maret 2015

Euro

Desire to sell the European currency has increased in the market. The sell signals were received after the ECB meeting where there was discussed issues regarding to the monetary policy. The euro sales were continued after the US non-farm report that was better than expected. The traders’ attention is focused on the Germany industrial production which came out better than expected - 0.6% and the revised euro area GDP for the 4th quarter which remained unchanged at the level of 0.3%. Being under pressure, the pair euro/dollar continued to fall and broke through the target of 1.0980-1.1000 that was the psychological level. The pair found the support near 1.0880-1.0900 and after the level testing there was a fall towards 1.0844.

The support levels are 1.0750-1.0770, and the resistance levels are 1.0900-1.0920.

MACD is in a negative territory.

Trading recommendations

The pressure on the pair is still preserved, still there are risks of the further fall. The confident of 1.1000 breakthrough opened the way towards a parity, but the pair is showing the oversold signs which can slow the movement downwards.

Pound

The British pound fell against the dollar at the end of the day. The reason was the increase demand for the US dollar amid the ECB report regarding to the quantitative easing and the US non-farm payrolls publication. There was published the number of net speculative positions within the pound by CFTC: -26,9K against -21,9K. The expected inflation rate was 1.9% against the previous 2.5%.

At the last session the pressure on the pair remained and bears moved below 1.5200-1.5220. The pair sharply fell and broke through the supporl levels of 1.5140-1.5160, 1.5080-1.5100 and tested the mark of 1.5020-1.5040.

The support levels: 1.5020-1.5040 and the resistance levels: 1.5100-1.5120.

The MACD indicator is in a negative territory.

Trading recommendations

Risks of the new growth are still preserved; the level of 1.5100-1.5120 breakthrough will lead to an increase towards 1.5160-1.5180.

Yen

The pair dollar/yen rose at the previous trades. The European reports increased demand for the US dollar as well as the US good labor report did. The leading indicators index was worse than expected: 105.1 against the previous 105.6 while it was expected 105.9. The foreign exchange reserves indices came out lower: 1.251B against 1.261,1B. At the last session the bulls broke through the 120th figure, the pair rebounds are now limited by the support around 120.00-120.20. The level breakthrough has led to an increase towards 121.30-121.50.

The support levels: 120.00-120.20, and the resistance levels: 121.30-121.50.

The MACD indicator is in a positive territory.

Trading recommendations

The price is likely to go to the downward trend line 120.00-120.20.