EUR/USD: analysis and forecast
Current trend
The pair EUR/USD has been trading within a range of 1.3800-1.3720 for two weeks. Investors do not risk entering the market, waiting for the results of FOMC meeting. The regulator is expected to announce the curtailment of QE3 program, although members of FRS can’t find a consensus. Those who are pro-curtailment underline economic recovery and unemployment decrease to 7%. Their opponents remind about inflation growth and propose to prolong soft monetary policy.
The pair won’t probably be volatile today. However publication of Economic Sentiment indices of Germany and Eurozone may give pair some impetus. The indices will most probably grow and make EUR/USD reach upper border of the channel at 1.3800.
Support and resistance
On the four-hour chart technical indicators confirm the possibility of the growth. Bollinger bands are moving sideways; the price chart has pulled back off the middle MA and is going up. MACD histogram is in positive zone and can soon cross the signal line from below. Stochastic lines has crossed and formed a signal to buy.
Trading tips
It is recommended to open long trades at current price with targets at 1.3800. Pending sell orders can be placed at the same level with take-profits around 1.3760.
Dmitriy Zolotov
Analyst of LiteForex Group of Companies
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GBP/USD: investors are keeping low profile
Current trend
At the yesterday’s trading session the pair was rather quiet. In the afternoon the pair BGP/USD approached the level of 1.6350; however failed to consolidate and fell below the level of 1.6330 (23.6% of Fibonacci retracement), which will become a resistance level. There will be number of key news from the UK and US today. It is likely that the UK consumer price index will not cause big reaction of investors, while the outcome of the US Fed meeting can affect the pair.
Support and resistance
The nearest resistance level is 23.6% of Fibonacci retracement (1.6330). Additional resistance to the growth will be provided by the levels of 1.6350, 1.6400 and 1.6467. Support levels are 1.6310, 1.6265 and 1.6240.
Trading tips
It makes sense to place buy order above the levels of 1.6350 and 1.6400 with the target of 1.6467. Short positions can be opened below the level of 1.6240.
Ilya Lashenko
Analyst of LiteForex Group of Companies
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