The EUR/USD continued its decrease | 30 7月 2014

Euro

The Euro has stabilized after we got the data confirming the U.S. pending home sales drop in June by 1.1% after the rate growth of 6% in May and is expected to strengthen to 0.5%.

However, the talk about the fundamental picture changing is not necessary as many experts expect the euro continued decline.

The euro/dollar decrease is being continued, but it can hardly be called a powerful. The pair had only 128 points, falling from 1.3549 to 1.3410. The recovery attempts were pretty weak and were limited by the resistance at 1.3420. Then this level was broken.

The support levels are 1.3355- 1.3375, and the resistance levels are 1.3420 - 1.3440.

MACD is in a negative territory.

Trading recommendations

Before the "bulls" stop they may test the support at the 34th figure, but they will need to fix below the 1.3420 first. The recovery is possible to 1.3480-1.3500-1.3535.

Pound

The UK will not please us with the interesting reports this week. The pound held the trading day within a narrow range of 1.6960 - 1700 and in the near future we expect the volatility growth. The U.S. dollar strengthening against its major competitors (DXY growth index) will support the "bears" and on this background we advise to open short positions from the resistance levels.

The pound/dollar continued to go downwards. It broke through the support at 1.6980 and then fell to 1.6950.

The support levels are 1.6880 - 1.6900, and the resistance levels are 1.6980 - 1.7000.

MACD is in a negative territory.

Trading recommendations

The "bears" may test the support at 1.6900 in the short term and the 69th figure area where the rising support line is located. Its breakout will lead to a decrease to 1.6850. Any attempts to growth to 1.7070 should be used as an opportunity to open the short positions.

Yen

The dollar/yen will be in demand on the back of positive dynamics in the Japanese stock market and we can expect the further 102 figure testing. However, we cannot count on a strong quotations growth now - the market participants do not hurry to enter the market before the U.S. Fed meeting. As the result we can expect the side trend development.

The Asian session was quiet for the USD/JPY. The positive sentiment is still preserved, but the stock market may start the downward correction which would pressure the pair.

The support levels: 101.80- 102.00, and the resistance levels: 102.30- 102.50.

The MACD indicator is in a positive territory.

Trading recommendations

The long USD/JPY deals are still relevant. We will decide where the price may go after the trading closing. If the candle closes above 102.23 we will expect the pair to grow to 102.70 and higher.