Daily market review on the 22.09.2014

There were no big convultions on the market. EUR/USD slowly recovering it's Friday losses. Many investors are starting to doubt about the effectiveness of the European economic stimulation program. Investors consider that more decisive actions can be taken in December as current measures do not provide the desired result. GBP/USD is continuing to descend after the refferendum; the pressure stays high. The currency pair USD/JPY is consolidated after active growth and there are prospects for further reduction. Gold continues to trade near its lows and there are prospects for further reduction.

Market news

Today we expect important news for Europe and the United States. In Europe, attention should be paid to the speech by the President of the European Central Bank (ECB), Mario Draghi. There may be strong movements at the time of his presentation. The UK is not publishing any important statistics today. As for the United States, we should pay attention to the statistics on sales of existing homes, since we are expecting better data than the previous which could have a positive impact on the USD.

Our recommendations

EUR/USD gradually reasserting itself. Moving averages are directed upwards, indicating further growth. The resistance levels are 1.2866 and 1.2927. The support level is 1.2825. We recommend selling (Put option) at the resistance level and buying (Call option) when the price is reaching its support level.

 

GBP/USD traded in a narrow corridor. Moving averages are directed upwards, indicating further growth. The strong resistance levels are 1.6364 and 1.6323, while the support level is 1.6284. We recommend selling (Put option) at the resistance level and buying (Call option) when the price is reaching the support level.

 

AUD/USD The Australian dollar is under selling pressure. Moving averages are directed downwards, indicating further decrease. The strong resistance levels are 0.8948 and 0.8993. The support level is 0.8919. We recommend selling (Put option) at the resistance level and buying (Call option) when the price is reaching its support level.

 

USD/JPY Currency pair USD/JPY is consolidating after strong growth. Moving averages are oriented horizontally, but may decline in the future. The strong resistance levels are 109.17 and 109.44. The support level is 108.59. We recommend selling (Put option) at the resistance level and buying (Call option) when the price is reaching its support.

 

GOLD Gold is trading near the lows. Moving averages are oriented horizontally, but may decline in the future. The strong resistance levels are 1218 and 1225. The support level is 1208. We recommend selling (Put option) at the resistance level and buying (Call option) when the price is reaching its support.

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