The euro strengthened on Friday trades. Earlier the European currency fell against both the dollar and the pound after the next long-term lending operations results release was held by the ECB. The traders’ attention will be focused on the October euro area industrial production release, the forecast expects an increase by 0.2% m/m and 0.8% y/y after a 0.6% m/m, 0.6% y/y in September. The 1.25 figure importance for the pair is obvious as all the previous attempts to overcome it were unsuccessful. This level continued to attract sale interest, so the pair fell down to the support around 1.2350-1.2370. That increases the downside risks to the 1.23 level. The pair rose above the level of 1.2425-1.2445.

The support levels are 1.2405-1.2425, and the resistance levels are 1.2500-1.2525.

MACD is in a positive territory.

Trading recommendations

The pair euro/dollar needs to stay above the ongoing support for the growth resumption and the next 25th figure breakthrough.

Pound

The British pound showed resistance and after multi-directional fluctuations recorded a neutral result against the dollar, closing the day at the opening prices. Construction production data forecasts are predicting a slowing increase in October, + 1.0% m /m and + 1.7% y/y vs. + 1.8% m/m, + 3.5% y/y last month. The euro decline within the cross-rate with the British pound supported the latter with the US dollar. Against this background, the pair could rebound from the support near 1.5630-1.5650 and rise up to 1.5730-1.5750, consolidating under this resistance level.

The support levels are 1.5630-1.5650, and the resistance levels are 1.5730 – 1.5750.

MACD is in a positive territory.

Trading recommendations

Now the level of 1.5650-1.5670 provides the support and its loss will lead to a decrease at least up to 1.5880-1.5600. The pair needs to grow and consolidate above 1.5800-1.5820 to continue its growth.

Yen

The Japanese statistics published the revised industrial production numbers for October, the value marked an improvement – an increase by 0.4% m/m and a decline by 0.8% y/y, when the previous calculations showed 0.2% m/m, -1.0% y/y. After initially falling to 117.95-118.15 the pair bounced to a level of 119.25-119.45. After this rebound bears made an attempt to break lower. They managed to push the pair lower and tested the support at the level of 117.95-118.15. As the upward trend is still in force, the pair decline again attracted buying interest and in resulted in the higher close.

The support levels: 117.95-118.15, and the resistance levels: 119.25-119.45.

The MACD indicator is in a negative territory.

Trading recommendations

We should continue to use dips to accumulate dollar long positions.