The euro is again under pressure reaching new lows


The euro is again under pressure reaching new lows

The euro grew for the first time last Thursday. However, its success was short-term and at the end of the week the European currency showed a negative result. According to the statistical office final data, the Italy consumer prices harmonized index increased in February as it was expected. The index rose by 0.1% on the annual basis in February. According to the initial assessment, the consumer prices rose by 0.3% on the month basis in February.

There was some profit taking after the level of 1.0480-1.0500 testing and in the light of this the pair was able to correct to the resistance near 1.0630-1.0650. The interest for sale is preserved and as the result the pair fell below 1.0480-1.0500.

The support levels are 1.0340-1.0360, and the resistance levels are 1.0500-1.0520.

MACD is in a negative territory.

Trading recommendations

It is possible the pair’s return to 1.0630-1.0650 in the short term. Also, it is possible that some time consolidation will be between this level and the level of 1.0480-1.0500.


The euro is again under pressure reaching new lows

Last week the British pound was trading in different directions, but eventually it fixed the minus against the dollar. The National Statistics Office stated that the construction volume decreased by 2.6% in January after a growth by 0.6% in December. Economists had forecasted growth by 1.2%. All new homes were built by 5% less than a year ago that is the most significant decline since last year February.

The pair also tried to develop an upward correction which was limited by the resistance near 1.5000-1.5020. As we could not speak about the trend reversal, the pair growth attracted the fresh interest for sale against when the pound fell to the support near 1.4680-1.4700. The support levels: 1.4680-1.4700 and the resistance levels: 1.4770-1.4790.

The MACD indicator is in a negative territory.

Trading recommendations

The long-term target of 1.4520-1.4540 remains valid, but we should not exclude recovery attempts in the short term. The consolidation within the range 1.4900-1.5000 is still possible. Growth above the latter level will weaken the downward pressure.


The euro is again under pressure reaching new lows

The pair dollar/yen was traded in the range on the Friday’s session and closed almost at the opening prices. The Japan industrial production volume revised data for January was 3.7% m/m vs. 4.0% m/m that is worse than expected. The Japan leading index from the Conference Board rose from 103.7 to 103.8 in January.

On the last week the pair again came under pressure which led to its decline below 121.10-121.30. Bears failed to fixate below this level and preserved a demand returned the pair to 121.30-121.50.

The support levels: 121.10-121.30, and the resistance levels: 122.40-122.60.

The MACD indicator is in a positive territory.

Trading recommendations

Thus, the pair is consolidating after its growth to 122.02. As long as it is trading above 120.20-120.40 chance of the fresh highs testing will be preserved. The decline below 120.20-120.40 will lead to the level of 119.05-119.25 testing.
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