The dollar needs the rates growth | 25 8月 2014

Euro

Last week main event was the Federal Reserve Chief’s speech at the economic symposium in Jackson Hole. The inflation risks decrease was noted in the last FOMC "minute", thus the monetary regulator starts moving away from their conservative views on the monetary policy rapid tightening.

The downtrend is in its active phase in the euro, but the euro/dollar decrease was limited by the support level of 1.3242 from which the pair could rebound to 1.3270, and in the Asian session - up to 1.3290. Then the pair fell again to the support level of 1.3220.

The support levels are 1.3200- 1.3220, and the resistance levels are 1.3270 - 1.3290.

MACD is in a negative territory.

Trading recommendations

The single currency needs to break through the resistance level of 1.3330 and to consolidate above it to continue the growth. Then we can expect the growth to 1.3375 and 1.3430.

Pound

The market participants can take a break to evaluate the British currency prospects. The pound is significantly oversold and with the important macroeconomic statistics publication absence traders can start to take profit on the short positions.

The GBP/USD is consolidating after the falling to 1.6570, however, the pair continues to trade below the 66th figure which successfully copes the resistance role. The pressure on the pound is still preserved and its prospects are quite bleak.

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

The UK currency may fall to 1.6500 in the short term, although the rebound upward risks look high. However, the attempts to grow in the level of 1.6700/20 direction should be considering as an opportunity to open short positions at the best quote.

Yen

In the interesting macroeconomic releases publication absence we should expect a quiet trading within a narrow price range. From an economic symposium in Jackson Hole we have not received any surprise. The Janet Yellen’s speech in Jackson Hole can have a significant impact on the USD/JPY dynamics this week.

The dollar/yen growth was stopped just below the 104th figure. Here goes the resistance of which the pair rebounded in early April and resumed the decline in the current minimums direction.

The support levels: 103.60- 103.80, and the resistance levels: 104.10- 104.30.

The MACD indicator is in a positive territory.

Trading recommendations

It is possible the "bears"’ activity and the dollar may drop to 103rd figure. The break through the resistance level of 104.10 will open the way to 104.70.