Daily market review for 05.11.2014

EUR/USD continues to trade higher than 1.25, but it is not rising further. Many investors consider a further fall on background of the end of the QE3 program in the USA. The medium-term goals remain near 1.23. These goals can already be achieved in this year. GBP/USD has strengthened higher than 1.60, but a further rise is constrained. In order to perform a further increase in value, a positive newsflow for the UK is needed. USD/JPY continues to rise actively, there are new perspectives for a further rise. Gold remains under strong selling pressure, most likely it will keep on falling.

Market news

Important statistics for the Eurozone, the UK and the USA are expected today. As to the Eurozone, we recommend to pay attention to the Services PMI in Spain, Italy, France and Germany. The data is expected to be better than the previous one and can positively impact the euro. As to the UK, we also recommend to pay attention to Services PMI, the forecast is negative and can affect the British currency. As regards to the USA, we recommend to pay attention to the ADP Nonfarm Employment Change, the results are expected to be positive and can influence the American dollar.

Our recommendations

EUR/USD trades in a narrow range. Moving averages stay down, which show a further decrease. The important levels that prevent the rise are located at 1.2557 and 1.2576. The important level that prevents the fall is located at 1.2504. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

GBP/USD trades negatively. Moving averages stay down, which show a further decrease. The important levels that prevent the rise are located at 1.6000 and 1.6020. The important level that prevents the fall is located at 1.5954. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

AUD/USD trades negatively. Moving averages stay down, which show a further decrease. The important levels that prevent the rise are located at 0.8738 and 0.8760. The important level that prevents the fall is located at 0.8708. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

USD/JPY trades positively. Moving averages stay up, which show a further increase. The important level that prevents the rise is located at 114.37. The important levels that prevent the fall are located at 113.92 and 113.42. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

GOLD is under selling pressure. Moving averages stay down, which show a further decrease. The important levels that prevent the rise are located at 1165 and 1174. The important level that prevents the fall is located at 1151. 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.