The market decided to correct the majors

16 April, 2015

Euro
The euro was able to reduce losses, it rose sharply against the US dollar and ended the trades with a positive result. The investors’ attention was focused on the ECB monetary policy decisions announcement and the by M. Draghi's press conference. Draghi did not say anything important as the market expected. The pair euro/dollar remained under pressure having decreased to the support near 1.0500-1.0520. There was marked profit-taking as a result there the pair rebounded above the resistance level of 1.0630-1.0650. The bears did their best there and the pair decreased below this level. Then the pair tested the resistance again.
The support levels are 1.0480-1.0500, and the resistance levels are 1.0630-1.0650.
MACD is in a negative territory.

Trading recommendations
Most likely, bulls again will test the resistance level of 1.0770-1.0790 in the short term and its breakthrough will allow them to test the level of 1.0900-1.0920. The euro needs to rise up and consolidate above 1.0900-1.0920 to continue its correction.


Pound
The US messages about the less satisfactory retail sales growth caused the pound increase against the dollar and led to its strengthening during the day. It is possible that the pound will continue to decline if investors consider the US more optimistic economic data. In addition, uncertainty, associated with the UK upcoming elections is not in favor of the "cable". The pair pound/dollar recovery was limited by the resistance near 1.4680-1.4700 where the pair declined to 1.4600-1.4620. There sellers fixed profits which led to the pair rebound towards the resistance near the 48th figure. The resistance level of 1.4770-1.4790 was broken through.
The support levels: 1.4750-1.4770 and the resistance levels: 1.4900-1.4920.
The MACD indicator is in a neutral territory.

Trading recommendations
We should not still talk about the base formation and the upward correction development, the pound needs to rise up and consolidate above 1.4900-1.4920 with the following psychological level of 1.5000-1.5020 breakthrough. Until then the risks that the pair can return to the current lows will be preserved.


Yen
The Japanese yen rose against the dollar after the Statistics announced the retail sales smaller increase. The Japanese news showed that the Japan inventories were revised up to + 1.1% m/m in February to 0.5% m/m previously. It had any impact on the pair dollar/yen. The Japanese yen has returned a part of the gains to the US dollar. All the bulls’ attempts to consolidate above 120.00-120.20 remain unsuccessful. Yesterday the pair declined again, having reached the support around 119.05-119.25. After this level testing the pair has broken it.
The support levels: 117.95-118.15, and the resistance levels: 119.25-119.45.
The MACD indicator is in a negative territory.

Trading recommendations
While the dollar is trading below the 120-th figure, the downside risks towards the 116th figure will be preserved. The growth above 120.20-120.40 is necessary for the uptrend resumption.

Ruban Sergey
Analyst of «FreshForex» company


Source link  
Selling from the area 1.5553-1.5562

Daily chart: the pair is striving to reach the upper Bollinger band (1.5715), but ADX show weaknesses, so we wait a strong resistance in this area...

Passing moves with local advantage of bulls

Daily chart: the pair is moving within the Bollinger envelopes, being "surrounded" by two colliding O&U s - from north it is from 1.1110, from south it is coming from 1.0825...

British Pound generally targets 1.54

Daily chart: a bearish pin from the upper Bollinger band has been produced , which almost certainly will bring the pair to the bottom Bollinger band in the next few days (1.5403)...


In the event of a rollback to 123.70 we should sell

Daily chart : the middle Bollinger band (123.14) is being tested and, apparently, decline to the bottom band (121.36) will continue...

Selling from 123.70

The daily chart: the pair turns to be in flat within the envelope Bollinger, however, here is a loss of support from the middle band (123.21), we see a dive to the bottom envelope in the direction of the bottom line (121.36)...

Flat 1.0963 -1.1006

Daily chart: the middle Bollinger band (1.1026) has been reached and, in contrast to descending envelopes and passive ADX, we can expect decline to the bottom band (1.0784) prior to a new upward dash...


Looking for growth to 1.0959-1.0978 and decline to 1.0881

Daily chart: bulls are moving to the middle Bollinger band (1.1026), from where a pullback is probable to happen to the area of demand in Euro configured by the pattern O&U (1.0825)...

Waiting for a pullback from the area 1.0978 and then we shall buy again

Yesterday the pair has confirmed its correctional potential. The nearest strong resistance - the middle Bollinger band (1.1047), from where Euro can go to 1.0825, accumulating a probable demand within the frames of O&U pattern. From this area, it can move even upper to 1.1280 and 1.1380...

Gold is losing its weight

This week we have at least three reasons to expect a descending tendency to go on. 1. US currency is demonstrating a confident growth of quotations...

  


Share: