14 August, 2015
Towards the end of the week, the Euro is holding its positions against the USD amid some doubts on the markets regarding the interest rate hike in the US in September. One of the reasons of such uncertainties is poor macroeconomic statistics coming out in the US.
Yesterday, the data on Retail Sales for July came out that showed an increase by 0.6%. However, Initial Jobless Claims for the week grew again from 269 to 274 thousands, which was worse than forecasts.
Support and resistance
Bollinger Bands on the daily chart is growing and the price range is widening, but the price is near its top border. Therefore, the indicator signals a possibility of a downward correction in the near future. MACD is growing and giving a buy signal. Stochastic remains in the overbought zone moving horizontally, thus pointing out to the possibility of the correction as well.
Support levels: 1.1129 (27 July high), 1.1100, 1.1035, 1.1000 (psychologically important level), 1.0970, 1.0914, 1.0900, 1.0865, 1.0808 (20 July low).
Resistance levels: 1.1150 (local high), 1.1200 (psychologically important level), 1.1245 (30 June high), 1.1279 (29 June high).
Long positions can be opened after the price consolidation above the levels of 1.1150, 1.1200 with targets at 1.1245, 1.1300 and stop-loss at 1.1100.
Short positions can be opened after the breakdown of the level of 1.1100 with the target at 1.1000 and stop-loss at 1.1150.
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...
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