Januari 13, 2014 - EUR/USD: NFPR dropped USD | GBP/USD: Decrease of US unemployment rate will lift USD up

EUR/USD: NFPR dropped USD Current trend Last Friday Non-Farm Payrolls have been published in USA. The majority of the experts expected a considerable rise of the indicator, however, the forecasts were wrong and the increase of new paid employees has been only by 74 000. Besides, the unemployment level has decreased from 7.0% to 6.7%. Under the pressure of labour market stats American currency has lost its positions, and the pair EUR/USD has ascended to the level of 1.3685, where the market has been closed. Since the beginning of the new session the pair is trading with low volatility and we expect it to stay today within a narrow channel. Support and resistance The closest resistance level is the local maximum 1.3685; the next ones are 1.3700, 1.3735, 1.3780. The pair will meet support at the levels of 1.3660, 1.3645, 1.3620 and 1.3600. Trading tips Short positions can be opened below the level of 1.3620. Pending buy orders should be placed above 1.3700. Ilya Laschenko Analyst of LiteForex Group of Companies ---------------------------------------------------- GBP/USD: Decrease of US unemployment rate will lift USD up Current trend Last Friday negative statistics from the US labour market has put pressure on the USD, triggering the decline in the pair GBP/USD to 1.6500. However, forecast for the USD is still positive. It became known that unemployment rate in the US fell to 6.7%, while it was expected that the index will remain at the previous level. The UK economic indices are declining as well, indicating slowdown of economic growth in the country. On Tuesday British key indices will become known, which are expected to go up slightly. On Thursday the data on number of initial claims for unemployment benefits in the US will be released, which is expected to reduce for several thousands. Support and resistance In the medium-term the pair is likely to go up to resistance level of 1.6540 and after that will decline to 1.6200 and 1.5920. The rise in the USD will be supported by strong US economic indices and increasing investors’ demand for the USD. Support levels: 1.6320, 1.6200, 1.6100 and 1.5920. Resistance levels: 1.6470, 1.6540 and 1.6600. Trading tips It is recommended to place short positions with profit taking at the level of 1.5950. Pending sell orders can be placed at the level of 1.6540 with the target of 1.5950. Dmitry Likhachev Analyst of LiteForex Group of Companies