Daily market review on the 21.08.2014

Daily market review

Trading during yesterday showed some significant fluctuations on the market. EUR/USD tends to decrease in value and already trades at 1.32 level at the moment. The pair is very close to its eleven-month lows. The forecast is negative and the further fall is likely to continue. GBP/USD trades near its four-month low. The negative statistics for the UK caused such fall. The tendency still remains and yesterday’s vote results showed that the majority is obviously against the rising of the interest rates. USD/JPY tends to increase in value and trades near 104 level. Gold keeps falling and there are still some tendencies for the further fall.

Market news

Today seems to have the important statistics for Europe, the UK and the USA. We recommend to pay attention to the Service Sector Business Activity Index and to the Manufacturing Activity Index in France and Germany. The data is expected to be worse, than the previous one and can negatively impact the euro. The statistics for retail sales in the UK are to be published, the forecast is also negative and could be a reason for a fall of the British pound. The statistics for the Sales of existing homes in the USA are to be published today and the data is expected to be worse than the previous one and can negatively influence the US dollar.

Our recommendations

EUR/USD EUR/USD is under the strong selling pressure. Moving averages stay down but there might be a further decrease. The important levels that prevent the rise are located at 1.3265 and 1.3296. The important level that prevents the fall is located at 1.3239. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

GBP/USD GBP/USD remains under the strong pressure. Moving averages stay down but there might be a further decrease. The important levels that prevent the rise are located at 1.6584 and 1.6599. The important level that prevents the fall is located at 1.6563. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

AUD/USD The Australian dollar tends to decrease in value. Moving averages stay down but there might be a further decrease. The important levels that prevent the rise are located at 0.9290 and 0.9316. The important level that prevents the fall is located at 0.9238. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

USD/JPY The pair continues to increase in value. Moving averages stay up that show a further increase. The important level that prevents the rise is located at 103.96. The important levels that prevent the fall are located at 103.67 and 103.20. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

GOLD Gold continues to decrease in value. Moving averages stay down but there might be a further decrease. The important levels that prevent the rise are located at 1292 and 1295. The important level that prevents the fall is located at 1285. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

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