The low Treasures supported the yen | 24 April 2015

Euro

The euro left the side consolidation and closed the trade with a growth. The consumer confidence preliminary index fell to -4.6 in April against -3.7 in March. The first time for five months this decrease has been a surprise as it was projected a growth to -3.0. The euro area manufacturing sector business activity fell to 51.9 in April from 52.2, the services sector index fell to 53.7 from 54.2.

Having continued its recovery, the pair euro/dollar tested the resistance near 1.0770-1.0790 and then it was rebounded downwards. Then bulls tested the mark of 1.0770-1.0790 and broke it.

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

MACD is in a neutral territory.

Trading recommendations

The pair’s ability to develop the upward correction indicates the high risk of the pair increase resumption. The resistance level of 1.0900-1.0920 breakthrough may lead to the pair growth towards 1.1000-1.1020.

Pound

The British pound has kept leadership in the foreign exchange market and has grown again against the dollar. The March retail sales are predicted with some growth slowdown – it is expected 0.4% m/m, + 5.4% y/y vs. + 0.7% m/m, + 5.7% y/y in February and the public sector net borrowings are expected with an increase to 7.2 billion in the same month after 6.9 billion pounds in February.

The bulls tried to break through the psychological level of 1.5000-1.5020. This level was broken through then the pair fell. The level of 1.4980-1.5000 testing was followed by the quotations’ rebound upwards.

The support levels: 1.4980-1.5000 and the resistance levels: 1.5100-1.5120.

The MACD indicator is in a positive territory.

Trading recommendations

Now the pair is trying to consolidate above 1.4980-1.5000 which will significantly improve its chances to continue the growth towards the 52nd figure. The loss of 1.4980-1.5000 may call into question the pound’s ability to recover further.

Yen

The pair is showing a multidirectional movement amid the Bank of Japan and the Government speeches which, along with the rhetoric about the weak yen impact on the economy affirm the need to continue the quantitative easing. The dollar was able to maintain a positive attitude. Having found the support near 119.05-119.25, the pair slowly rose up until it tested the mark of 120.00-120.20. After that it was rebounded towards the support around 119.05-119.25.

The support levels: 119.05-119.25, and the resistance levels: 120.20-120.40.

The MACD indicator is in a positive territory.

Trading recommendations

The pair is approaching the 120th figure; it still needs a confident breakthrough for the growth continuation. Otherwise, the dollar can be a subject to sales.