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    The pound keeps falling below 1.5400

    The pound keeps falling below 1.5400


    The pound keeps falling below 1.5400

    Eurozone problems continue to affect the European currency that was traded in the mixed trend against the dollar and fall with a gap. The November money supply increase reports could support the euro more than expected – the M3 aggregate expanded by 3.1% y/y against the forecast by 2.6% y/y after 2.5% y/y in October. The US ISM manufacturing index fell to the level of 55.5 in December. The pair euro/dollar continues falling. The pair broke through another low at the level of 1.2070-1.2090 and fell below the level of 1.2000-1.2020.

    The support levels are 1.1930-1.1950, and the resistance levels are 1.2000-1.2020.

    MACD is in a negative territory.

    Trading recommendations

    We expect the short-term downward movement in the descending corridor near 1.2020-1.1950, it is likely a turn into a correction here. The level of 1.1930-1.1950 test allows us expect a rebound upwards.


    The pound keeps falling below 1.5400

    The pound fell with a gap on Friday. Earlier the British pound rose against the dollar. Obviously, interest in pound was caused by technical factors that with a strong support presence stimulated investors to take profit. The construction-spending fell to -0.3% in November (forecast 0.3%) against the earlier 1.1% in the US. Another attempt to recover the pound/dollar failed after the mark of 1.5600-1.5620 testing. The bulls’ attempts were unsuccessful that led to the resumed decline, the support breakthrough near 1.5395-1.5415 and the pair decrease below the level of 1.5360-1.5380.

    The support levels: 1.5260-1.5280 and the resistance levels: 1.5380-1.5400.

    The MACD indicator is in a negative territory.

    Trading recommendations

    We expect the short-term downward corridor movement 1.5380-1.5280. The price may rebound upwards from the level of 1.5260-1.5280.


    The pound keeps falling below 1.5400

    The US dollar continues to rise to the four-day high of 120.71 against the yen. The final data are already published - the US manufacturing sector business activity index rose to 53.9 in December against the earlier 53.7. We expect the stock markets decline, in particular the Nikkei fell by 1.57%. The dollar was sold off during a decrease to 119.05-119.25 that allowed it to rise to 120.73. The dollar did not manage to overcome the bears’ resistance 121.30-121.50.

    The support levels: 120.00-120.20, and the resistance levels: 121.30-121.50.

    The MACD indicator is in a neutral territory.

    Trading recommendations

    The short-term upward movement is possible near the level of 121.30-121.50, the last level breakthrough will cause the directional movement, the target is 122.40-122.60. We expect a consolidation.

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