The market decided to correct the majors

April 16, 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

Publication source
FreshForex information  FreshForex reviews

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