Daily market review on the 26.08.2014

Daily market review

On Monday EUR/USD renewed its eleven-month low. The fall happened because of the expectations based on an interest rate rise already in the next year. Europe is going to apply some stimulus measures during this time. In order to achieve inflation to a targeted level, the quantitative easing program needs to be run, but the ECB has not made its final decision in this matter. EUR/USD is currently consolidating after the active fall, but there are still some tendencies for a further decrease in value. GBP/USD trades in a narrow range and is still under the pressure. Gold starts to consolidate and tends to rise.

Market news

The important statistics for the UK and the USA are expected today. The secondary statistics for Europe are to be published which will not make any significant impact on the market. As to the UK we recommend to pay attention to the statistics for BBA mortgage approvals, the positive news are expected and can influence the British currency. As regards to the USA, we recommend to pay attention to the report on the durable goods orders, the data is expected to be worse than the previous one and can negatively impact the US dollar. Later this day the statistics for the CB consumer confidence are to be published which can also influence the American dollar.

Our recommendations

EUR/USD EUR/USD tends to consolidate after its active fall. Moving averages stay horizontally but there might be a further rise. The key resistance levels are located at 1.3206 and 1.3246. The key support level is located at 1.3177. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

GBP/USD GBP/USD trades in a narrow range. Moving averages stay horizontally but there might be a further rise. The key resistance level is located at 1.6597. The key support levels are located at 1.6564 and 1.6536. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

AUD/USD The Australian dollar trades in a narrow range. Moving averages stay horizontally but there might be a further rise. The key resistance levels are located at 0.9301 and 0.9322. The key support level is located at 0.9271. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

USD/JPY The pair consolidates after the rise. Moving averages stay down that show a further decrease. The key resistance levels are located at 104.11 and 104.27. The key support level is located at 103.75. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

GOLD Gold trades in a narrow range. Moving averages stay up that show a further rise. The key resistance level is located at 1284. The key support levels are located at 1279 and 1274. We recommend to sell Put Options from the resistance levels and to buy Call Options from the support levels.

 

 

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