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    The euro corrected after two week rally

    The euro corrected after two week rally


    The euro corrected after two week rally

    The euro has showed the strongest growth for more than a month against the dollar. The Labor Department stated that the unemployment benefits fell by 8,000 in April. Economists had forecasted decline by 13,000. The Germany unemployment rate remained at the record low level of 6.4%, the expectations are supported by the economic growth strong data. The bulls were strong enough not only to test the psychological level of 1.1000-1.1020, but also to break through it. Moreover, they have immediately broken through the resistance near 1.1120-1.1140 which led to an increase to the level of 1.1270-1.1290.

    The support levels are 1.1100-1.1120, and the resistance levels are 1.1270-1.1290.

    MACD is in a positive territory.

    Trading recommendations

    Theoretically, we should consider the pair purchases on the rebounds towards 1.1000-1.1020 and at the same time without neglecting to follow the Greece news. In general, taking into consideration the ECB monetary policy and the situation in Greece, the sales on the pair growth look more attractive.


    The euro corrected after two week rally

    The British pound has also grown against the dollar but ten it corrected at the last session. The main reason for the pound purchases was the US economy weak data which intensified opinions that the US policy tightening would not happen soon. The UK consumer confidence index by GfK remained at the level of 4 in April when it was expected a decline to the level of 3. This report did not cause any motions in the market; the pound continues to consolidate against the dollar near the highs reached yesterday.

    The pair pound/dollar is correcting. The pair broke through the resistance near 1.5400-1.5420 which led to its rise to the resistance around 1.5480-1.550 which could hold back the bulls’ impulse. After this level testing the pair rebounded below the support level of 1.5380-1.5400.

    The support levels: 1.5240-1.5260 and the resistance levels: 1.5400-1.5420.

    The MACD indicator is in a positive territory.

    Trading recommendations

    The sentiment remains positive and in case of this resistance breakthrough the pound can retest 1.5480-1.5500. The pair is showing the overbought signs so a downward correction continuation is possible from the current levels.


    The euro corrected after two week rally

    The Japanese yen was initially under pressure, but supported by the US weak statistics, the yen started to strengthen against the US dollar. Nevertheless, the dollar recorded "profit" at the end of the day. The pair is influenced by the main event for the yen - the Bank of Japan monetary policy meeting decisions announcement. The Japanese regulator has left the policy unchanged which disappointed some investors that expected further economic stimulus. The US regulator also left interest rates unchanged.

    The pair dollar/yen remains under pressure, but all attempts to break through the support near 117.95-118.15 are unsuccessful. The dollar is bought off on dips, and it could develop the upward dynamics above 119.25-119.45.

    The support levels: 119.05-119.25, and the resistance levels: 120.20-120.40.

    The MACD indicator is in a neutral territory.

    Trading recommendations

    The bears’ inability to break through and consolidate below 117.95-118.15 may lead to a profit-taking with the following growth towards the 120th figure.

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