The euro fell below 1.0700

10 April, 2015

Euro
The euro was the most vulnerable asset in the foreign exchange market yesterday. The euro fell against all of its competitors under the euro area economy data influence and messages from other regions. The industrial production increased by 0.2% m/m in February after a decrease by 0.4% in January while earlier it was reported growth by 0.6%. The Germany trade surplus balance was 19.7 billion euros the forecast for February was 19.4 billion euros.

The recovery attempt ended with a failure for the pair. The pair was sold off on the growth to 1.0880-1.0900 which led to its decline to the support near 1.0750-1.0770. This level of was broken and the pair decreased to the level of 1.0630-1.0650.

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

MACD is in a negative territory.

Trading recommendations

The last FOMC meeting minutes did not become a reason for the dollar sales, so it is possible the aforementioned support breakthrough and the pair decrease to 1.0480-1.0500.


Pound
The pound showed a multidirectional trade and as a result fixed a decrease against the dollar. The UK trade deficit increased to £10,34 billion in February from £ 9,17 in January whose figure was revised from the deficit £ 8,41 billion. Analysts predicted that the trade deficit reached £ 9,00 billion in February.

As expected the BoE will keep its key interest rate and the asset purchase program unchanged.

The pair also made the recovery attempt. The pair rebounded from the support near the 48th figure and rose up to the resistance near 1.4980-1.5000. Having not tested the psychological level of 1.5000, the pound again came under pressure from the sellers’ part, declining to the support near 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 decline risks towards 1.4600-1.4620 are still high.


Yen
After multidirectional movement during the day the pair finished the session with a growth. The Japanese statistics published the March equipment orders - the indicator was fixed with a slowdown to 14.6% y/y against the earlier 28.9% y/y. The decrease below the level of 120.00-120.20 can attract buying interest whereby the dollar returned above the 120-th figure and broke through the resistance near 120.20-120.40.

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 pair needs to consolidate above the 120th figure for its growth continuation and then we can expect its growth towards the 122nd figure. The pair decrease below 120.00-120.20 and the loss of support near 119.05-119.25 will be a signal for the downward correction resumption.

Ruban Sergey
Analyst of «FreshForex» company

 


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