Daily market review on the 05.09.2014

Daily market review

Yesterday brought some major significant fluctuations on the market. The ECB (European Central Bank) has cut the interest rates from 0.15% to 0.05% and it has caused such movements. EUR/USD is down more than 200 pips and located lower 1.30 that most investors have awaited for a while. The decrease of the interest rates was not highly expected, but the low inflation rate in Eurozone has caused such fall. There are currently some tendencies for a further decrease in value. GBP/USD, just like the value of the EUR/USD, tends to fall and is down 180 pips. Today is an important day on the market, therefore some movements can be continued. Gold remains under the strong selling pressure.

Market news

The important statistics for Europe and the USA are expected today. As regards to Europe, we recommend to pay attention to the GDP report, the data is expected to be on the same level, but in case of any negative news, an extra pressure on the euro will be provided. As to the USA, we recommend to pay attention to the statistics for the nonfarm payroll employment, the positive news are expected and can lead to a further strengthening of the American dollar. The percentage of people employed in agriculture is one of the most important economic events in the USA.

Our recommendations

EUR/USD EUR/USD tends to actively decrease in value. Moving averages stay horizontally, but there might be a further decrease. The key resistance levels are located at 1.2956 and 1.2972. The key support level is located at 1.2920. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

GBP/USD GBP/USD, so does the value of the EUR/USD, tends to fall actively. Moving averages stay horizontally, but there might be a further decrease. The key resistance levels are located at 1.6318 and 1.6358. The key support level is located at 1.6286. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

AUD/USD The Australian dollar trades in a narrow range. Moving averages stay horizontally, but there might be a further decrease. The key resistance levels are located at 0.9346 and 0.9390. The key support level is located at 0.9331. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

USD/JPY The pair trades near its highs. Moving averages stay horizontally, but there might be a further decrease. The key resistance level is located at 105.69. The key support levels are located at 105.22 and 104.86. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

GOLD Gold remains under the selling pressure. Moving averages stay horizontally, but there might be a further increase. The key resistance levels are located at 1264 and 1270. The key support level is located at 1257. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

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