The GBP/USD strengthened its positions | 20 Maret 2015

Euro

Before the US messages publication, the pair euro/dollar was trading almost at the same level without any directed movements and after their announcement it sharply increased. But then the pair rebounded downwards. The Eurozone news is not rich with important events and only the starting EU summit can attract the traders’ attention. If we talk about the euro prospects, as it seems, the fact of quantitative easing by the ECB will remain the main driver for the pair euro/dollar.

The Fed comments were able to change the situation for the pair. The long positions large-scale profit-taking allowed the pair to continue its previous growth. Having rebounded from the level of 1.0610-1.0630, it has grown above the several figures and tested the level of 1.1000-1.1020. the test was fallowed by the price decrease to the support level of 1.0610-1.0630.

The support levels are 1.0610-1.0630, and the resistance levels are 1.0770-1.0790.

MACD is in a positive territory.

Trading recommendations

There interest for sale was preserved as the result the euro fell to the support near 1.0610-1.0630. Attempts to resume its growth were limited by the offers at the level of 1.0900-1.0920 which gives reason to doubt the euro ability to rise again to the psychological level of 1.1000. It is possible that the pair will fall to the levels of 1.0500-1.0520.

Pound

The British pound showed a multidirectional volatility and closed the session with a decrease against the dollar. The UK news is not rich with messages; only the February mortgage lending shall be release and the Bank of England chief economist E. Haldane will give his speech. Being under pressure, the pair fell to the support near 1.4600-1.4620. The pair increased to the level of 1.5160-1.5180 on the Fed comments which fell to the support near 1.4880-1.4900 after the level testing. The growth attempts resumption were limited by the level of 1.5000-1.5020 from which the pair decreased to 1.4680-1.4700.

The support levels: 1.4680-1.4700 and the resistance levels: 1.4770-1.4790.

The MACD indicator is in a negative territory.

Trading recommendations

The pair can fall to the support level of 1.4600-1.4620 in the short term. Inability to consolidate above 1.5000-1.5020 will call into question the pound ability to continue its growth.

Yen

The price has fallen and the dollar recorded losses against the Japanese yen. The fall was short-term and the price rebounded upwards. The Japan news: the goods volume purchases and the business services: 1.9% m/m vs. -0.1% m/m. The Japan Economy Minister Amari stated that the real wages growth could help the consumption and GDP growth. He also said that the real wages growth could be seen approximately in summer. Due to the large-scale profit-taking, the bears could break through the support around the psychological level of 120.00-120.20. It led to the pair decline to the level of 119.25-119.45 and after its testing there was a rebound to 120.90.

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

The MACD indicator is in a negative territory.

Trading recommendations

It is obvious that the dollar is sold off with more readiness and therefore the dollar sales continue to rise. However, it needs to consolidate above the 120th figure for its growth resumption as well as to overcome the resistance near the 121st figure. The dollar decrease below 120.00-120.20 will indicate the downward correction development.