American dollar had received support after the meeting of the US FOMC

November 3, 2014

Current trend

Last week the American dollar had received support after the meeting of the US FOMC; at the same time, the pair EUR/USD has weakened and continues to remain under pressure. Follow-up statements of the US Fed were sharper than expected by investors. The latest statistics also showed that growth rate   is at the same level.

This trading week the pair had started with the downward movement and quickly reached new local lows. The difference between growth rate of the American and European economies are increasing. The data, which will be released this week, will probably confirm this fact.

Today, business activity index in the US manufacturing sector for October will become known. On Wednesday, business activity index in the service sector for the same period. At the end of the week, the US labor market data will traditionally become known. Forecast for the labor market is below the previous level. However, if the new index reaches the level of the previous month, American currency will receive significant support.

Levels of support and resistance

Resistance levels: 1.2500, 1.2550, 1.2580 and 1.2600. The main target of the “bulls” is to consolidate above the level of 1.2500.

Support levels: 1.2485, 1.2460 and 1.2440.

Trading tips

It is recommended to open long positions above the level of 1.2550 with the target of 1.2650. Sell positions can be opened at the level of 1.2440, do not forget to place protective orders.

 

Ilya Lashenko

 LiteForex Investments Limited Analyst

Publication source
LiteForex information  LiteForex reviews

December 2, 2016
It's not the jobs numbers
It’s not bee the economy that has been driving the dollar over the past 3 weeks, of that we can be pretty sure. Rather, it’s been expectations of tax cuts and spending increases, together with incentives for dollar repatriation under the new President...
December 2, 2016
OPEC alliance stuck a global agreement
The Oil prices jumped on Wednesday after the organisation members agreed to pare production first time since 2008, to reduce global oversupply, which made the prices collapse by half since mid-2014...
December 2, 2016
Rebound continues in UK construction
The latest data on the UK construction sector was released this morning, and will likely be seen as positive overall as the recovery from the Brexit shock appears to be persisting. Despite this the FTSE 100 is under pressure this morning...

Trade360 Rating
OANDA Rating
FXCM Rating
XM Rating
Fort Financial Services Rating
FOREX.com Rating

24option Rating
Porter Finance Rating
TropicalTrade Rating
Beeoptions Rating
Empire Option Rating
Anyoption Rating