Daily market review on the 18.08.2014

Daily market review

There were no significant fluctuations on the market, but some gaps occurred after the weekend. EUR/USD made a small gap for 6 points, GBP/USD made a big gap for 39 points. EUR/USD continues to trade in a narrow range and there seems to be a breach out of that in the nearest future. GBP/USD tends to stabilize, but mostly decreases in value. Do not forget that the referendum in Scotland will be held on the 18th of September and can influence the market. The US dollar index consolidates after the active rise. The Gold trades in different directions, but mostly increases in value, so a future rise is possible.

Market news

There are no important statistics for Europe, the UK and the USA expected today. The secondary statistics for Europe are to be published, which do not impact the market. There are no statistics for the UK for today. The secondary statistics for the USA are to be published, which do not make a strong influence on the market. Considering Canada, we recommend to pay attention to the statistics for the Foreign Security Purchases, the data is expected to be worse than the previous one and can negatively impact the Canadian dollar.

Our recommendations

EUR/USD EUR/USD continues to trade in a narrow range. Moving averages stay horizontally, but there might be a future decrease. The key resistance level is located at 1.3408. The key support levels are located at 1.3384 and 1.3359. We recommend to sell Put Options from the resistance levels and to buy Call Options from support levels.

 

 

GBP/USD GBP/USD tends to stabilize. Moving averages stay up and show a further increase. The key resistance level is located at 1.6732. The key support levels are located at 1.6713 and 1.6689. We recommend to sell Put Options from the resistance levels and to buy Call Options from support levels.

 

 

AUD/USD The Australian dollar tends to increase in value. Moving averages stay up but there might be a future increase. The key resistance level is located at 0.9333. The key support levels are located at 0.9308 and 0.9297. We recommend to sell Put Options from the resistance levels and to buy Call Options from support levels.

 

 

USD/JPY The pair trades in a narrow range. Moving averages stay up but there might be a future increase. The key resistance levels are located at 102.45 and 102.72. The key support level is located at 102.15. We recommend to sell Put Options from the resistance levels and to buy Call Options from support levels.

 

 

GOLD Gold trades in a narrow range. Moving averages stay up but there might be a future increase. The key resistance levels are located at 1306 and 1310. The key support levels are located at 1297 and 1292. We recommend to sell Put Options from the resistance levels and to buy Call Options from support levels.