Januari 15, 2014 - EUR/USD: general analysis | GBP/USD: negative statistics put pressure on the Pound

EUR/USD: general analysis Current trend The Unified European currency has traded in the narrow range of 60-70 points since the end of last week. Neither “bulls”, nor “bears” can take control over situation in anticipation of the macro-economic news, which can add momentum to the price movement. Euro is supported by Italian fundamental statistics. It became known that the yield of Italian bonds fell from 1.79% to 1.51%. Italy has successfully placed debt securities for 4 billion euro maturing in 2016. Meanwhile, demand for 7-year bonds significantly exceeds the demand. Attention today shall be focused on the GDP of Germany. The index may to drop to the level of 0.5%, which can lead to weakening in Euro. Support and resistance The nearest resistance level is the upper limit of the channel at the level of 1.3700. Support level is the local lows of 1.3635. Trading tips It is recommended to open long positions after breakdown of the level of 1.3700 with protective orders near 1.3650 and a target of 1.3820. Dmitry Agurbash Analysts of LiteForex Group of Companies ----------------------------------------------------- GBP/USD: negative statistics put pressure on the Pound Current trend The pair continues to go down slowly amid negative data on the UK inflation. In addition, UK consumer price index has also declined to the level of 2% in December 2013. Today’s key event is a speech of Mark Carney, who will definitely touched the subject of inflation decline and will sketch out prospects of further economic growth. As expected, US retail sales fell to 0.2% in December 2013. Attention today shall be paid to the US “Beige book,” the data on initial application for unemployment benefits and consumer price index. Support and resistance The Pound is under pressure from macro-economic statistics. If the data on retail sales, which will become known on Friday, will be negative, the pair GBP/USD can fall to support level of 1.6320. In the medium-term down trend can maintain with the targets of 1.6100 and 1.5920. 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 at the level of 1.5950. Pending sell orders can be placed at the level of 1.6470 with profit taking of 1.6200-1.5950. Dmitry Likhachev Analyst of LiteForex Group of Companies