Daily market review for 21.10.2014

The euro rises after the launching of the ECB program aimed at buying the assets. The program was launched on the 20th of October this year. A further rise of EUR/USD is likely to be complicated, since the asset remains under selling pressure and in regards to the general negative situation in Europe. Medium-term targets remain on the same level and we possibly will see EUR/USD at 1.23. Investors are increasing medium-term sales that create an additional pressure. GBP/USD trades positively, but such movement should be considered as a correction. USD/JPY remains under strong selling pressure. Gold continues to trade positively, and there might be a further increase in value.

Market news

Important statistics for the USA are expected today. As to the Eurozone, only secondary statistics will be published and it will not have a great influence on the market. There is also no important news for the UK. As regards to the USA, we recommend to pay attention to the Existing Home Sales report, the data is expected to be better than the previous one and can positively affect the American dollar.

Our recommendations

EUR/USD trades positively. Moving averages stay up, which show a further increase. The important level that prevents the rise is located at 1.2823. The important levels that prevent the fall are located at 1.2787 and 1.2754. 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 up, which show a further increase. The important level that prevents the rise is located at 1.6182. The important levels that prevent the fall are located at 1.6151 and 1.6126. 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 up, which show a further increase. The important level that prevents the rise is located at 0.8827. The important levels that prevent the fall are located at 0.8808 and 0.8758. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

USD/JPY remains under strong pressure. Moving averages stay down, which show a further decrease. The important levels that prevent the rise are located at 106.97 and 107.38. The important level that prevents the fall is located at 106.24. 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 up, which show a further increase. The important level that prevents the rise is located at 1250. The important levels that prevent the fall are located at 1243 and 1240. 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.