Daily market review for 16.10.2014

On this Wednesday the American dollar fell significantly after the publication of negative data in the USA. The decline of the retail sales level was considerable and therefore caused an active fall of the USD. Many investors see such movement as a deep correction. EUR/USD has strengthened higher than 1.28, which is a positive signal for buyers of the asset. GBP/USD does not trade as positively as EUR/USD. But the pair has demonstrated an active rise. USD/JPY is under strong pressure and continues to decrease in value. On a background of such news, Gold trades quite positively.

Market news

Important statistics for the Eurozone and the USA are expected today. As to the Eurozone, we recommend to pay attention to the Consumer Price Index, the data is expected to remain on the same level, but in case of any positive results, the euro will continue to rise. As regards to the USA, we recommend to pay attention to the Philadelphia Federal Reserve Manufacturing Index, the forecast is negative and can impact the American dollar.

Our recommendations

EUR/USD trades positively. Moving averages stay horizontally, but there might be a further increase. The important level that prevents the rise is located at 1.2884. The important levels that prevent the fall are located at 1.2807 and 1.2740. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

GBP/USD trades positively. Moving averages stay down, which show a further decrease. The important levels that prevent the rise are located at 1.6003 and 1.6066. The important level that prevents the fall is located at 1.5872. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

AUD/USD trades positively. Moving averages stay horizontally, but there might be a further increase. The important level that prevents the rise is located at 0.8857. The important levels that prevent the fall are located at 0.8776 and 0.8715. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

USD/JPY remains under pressure. Moving averages stay up, which show a further increase. The important levels that prevent the rise are located at 106.38 and 107.48. The important level that prevents the fall is located at 105.18. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

GOLD trades positively. Moving averages stay horizontally, but there might be a further increase. The important level that prevents the rise is located at 1248. The important levels that prevent the fall are located at 1237 and 1222. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

The information and recommendations contained in this analytical document are published strictly for information purposes and are not considered as an offer to buy or sell the trading tools mentioned above and are not intended to motivate to perform certain transactions.