Daily market review for 20.10.2014

Today the marked has opened without significant fluctuations. In the end of the last week the American dollar decreased in value on a background of the FOMC speeches. EUR/USD consolidates after its active rise. Generally there are some tendencies for a further fall, but a certain newsflow is necessary, but no important news is expected today. GBP/USD trades in a narrow range, many investors consider a further decline of the British pound. Medium-term targets remain at 1.55, in order to achieve them, some fundamental data is needed. USD/JPY continues to stabilize. Gold still trades positively, and there are some tendencies for a further rise.

Market news

Important statistics for the Eurozone and the USA are expected today. As to the Eurozone, we recommend to pay attention to the German Producer Price index, the data is expected to be better than the previous one and can positively impact the euro. No statistics for the UK are expected today, therefore the British pound is physically impacted by investors. As regards to the USA, the FOMC member Powell will perform a speech, some strong multi-directional movements are expected during the event.

Our recommendations

EUR/USD consolidates after its active rise. Moving averages stay horizontally, but there might be a further decrease. The important levels that prevent the rise are located at 1.2768 and 1.2835. The important level that prevents the fall is located at 1.2736. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

GBP/USD trades in a narrow range. Moving averages stay up, which show a further increase. The important level that prevents the rise is located at 1.6124. The important levels that prevent the fall are located at 1.6082 and 1.6028. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

AUD/USD trades in a narrow range. Moving averages stay horizontally, but there might be a further increase. The important level that prevents the rise is located at 0.8786. The important levels that prevent the fall are located at 0.8767 and 0.8734. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

USD/JPY tends to stabilize. Moving averages stay up, which show a further increase. The important level that prevents the rise is located at 107.38. The important levels that prevent the fall are located at 107.05 and 106.56. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

GOLD trades in a narrow range. Moving averages stay horizontally, but there might be a further increase. The important level that prevents the rise is located at 1240. The important levels that prevent the fall are located at 1234 and 1232. 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.