The dollar keeps strenghthening | 29 8月 2014

Euro

The key events are scheduled for the American trading session. First, the investors will be focused on the Germany inflation release. We can expect the CPI according to forecasted median level. The German 10-year bonds yield has been fallen down.The euro/dollar is gradually recovering after the fall to 1.3160. The recovery as well as its intensity, are more than modest and the resistance level of 1.3220 managed to hold back the bulls’ impulse.

The support levels are 1.3140- 1.3160, and the resistance levels are 1.3220 - 1.3240.

MACD is in a negative territory.

Trading recommendations

Now, the single currency needs to consolidate above 1.3160 and then we can wait the continued growth and the resistance level of 1.3220 testing. The support level of 1.3160 loss will return the pair to the downtrend channel.

Pound

The bulls are trying to take control over the situation, but near the 66th figure they have met the bears’ resistance which indicates the strong seller's presence. In absence of interesting reports we can expect a side trend within the range of 1.6535-1.6600.The pound is trying to recover against the dollar, but its attempts are limited by the resistance level of 1.6670. It did not manage to consolidate above the 66th figure that could return the pound to the current minimums at 1.6500.

The support levels are 1.6550 - 1.6570, and the resistance levels are 1.6640 - 1.6660.

MACD is in a negative territory.

Trading recommendations

While the pair is trading above the local support level of 1.6570, the level of 1.6640 breakthrough chances and the rise to the 67th figure remain high. The pound/dollar upward movement is constrained by the pound reduction against the euro.

Yen

The market participants do not hurry to open positions before the Japan CPI publication. The intermarket relations point to the possible dollar/yen quotations decrease. The Nikkei 225 futures were under the pressure from the bears over the past two days that is also negative for the USD/JPY bulls. The dollar growth against the yen stopped just above the 104th figure. It fell to 103.78, and then to 103.60. It failed to consolidate above the broken resistance level of 103.80, increasing the downward movement possibility to the 103rd figure.

The support levels: 103.15- 103.35, and the resistance levels: 103.80- 104.00.

The MACD indicator is in a positive territory.

Trading recommendations

While the dollar is trading above the 103rd figure, the upward trend will be in force, but this level loss will weaken the upward momentum and lead to the reduction to 102.70.