Daily market review for 03.10.2014

Daily market review

The European Central Bank is planning to launch an asset purchase program already in this month. The program will be launched to reduce the risks of deflation. The ECB is planning to start the program in the middle of October, but does not disclose any concrete dates yet. EUR/USD continues to trade in a narrow range, but on a background of the last news a further decline is possible. There’s a possibility to reach the 1.20 level already in this year. GBP/USD remains under strong selling pressure, but there might be a further decrease in value. In a medium-term perspective there are some targets near 1.55. USD/JPY tends to gradually consolidate, and there are some tendencies for a further rise. Gold continues to trade in a narrow range.

Market news

Important statistics for Europe, the UK and the USA are expected today. As to the Eurozone, we recommend to pay attention to the Services Purchasing Managers’ Indexes in Spain, Italy, France and Germany. The data is expected to be worse than the previous one and can negatively affect the euro. The Services PMI report will be also released in the UK, the results are expected to be negative and can influence the British pound. As regards to the USA, we highly recommend to pay attention to the Unemployment rate report, which is one of the most important statistics in the country, the forecast is positive and can influence the American dollar.

Our recommendations

EUR/USD EUR/USD trades in a narrow range. Moving averages stay horizontally, but there might be a further decrease. The key resistance levels are located at 1.2674 and 1.2698. The key support level is located at 1.2614. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

GBP/USD GBP/USD trades negatively. Moving averages stay horizontally, but there might be a further decrease. The key resistance levels are located at 1.6161 and 1.6248. The key support level is located at 1.6110. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

AUD/USD The Australian dollar gradually consolidates. Moving averages stay horizontally, but there might be a further increase. The key resistance levels are located at 0.8798 and 0.8825. The key support level is located at 0.8763. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

USD/JPY The pair remains to trade positively. Moving averages stay up, which show a further increase. The key resistance level is located at 108.94. The key support levels are located at 108.34 and 107.99. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

GOLD Gold trades in a narrow range. Moving averages stay down, which show a further decrease. The key resistance levels are located at 1215 and 1222. The key support level is located at 1209. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

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