Daily market review for 16.12.2014

EUR/USD attempts to stabilize. It has some perspectives for a short-term rise, but the medium-term trend stays down. A lot of statistics for the Eurozone will be published today, therefore some strong movements are expected. GBP/USD continues to trade in a narrow range, but there are also some tendencies for a short-term rise. USD/JPY remains under strong selling pressure. At this time the asset was influenced by the election results in Japan. Most likely, the Prime Minister will remain on his place for a long time, and his policy implies loyalty to the JPY depreciation. Gold remains under strong selling pressure and has some tendencies for a further increase in value.

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 German PMI report, the data is expected to be better than the previous one and can positively affect the euro. Later this day, the German ZEW Economic Sentiment will be released, in case of positive results EUR/USD can continue to rise. As to the UK, we recommend to pay attention to the Consumer Price Index report, the data is expected to be worse than the previous one and can negatively influence the British currency. As regards to the USA, we recommend to pay attention to the Building Permits, the forecast is negative and can impact the American dollar.

Our recommendations

EUR/USD trades positively. Moving averages stay up, which show a further increase. The important levels that prevent the rise are located at 1.2463 and 1.2477. The important level that prevents the fall is located at 1.2427. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

GBP/USD trades in a narrow range. Moving averages stay up, which show a further increase. The important levels that prevent the rise are located at 1.5675 and 1.5745. The important level that prevents the fall is located at 1.5601. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

AUD/USD trades in a narrow range. Moving averages stay up, which show a further increase. The important levels that prevent the rise are located at 0.8227 and 0.8267. The important level that prevents the fall is located at 0.8199. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

USD/JPY trades negatively. Moving averages stay down, which show a further decrease. The important levels that prevent the rise are located at 117.98 and 118.93. The important level that prevents the fall is located at 117.09. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

GOLD trades negatively. Moving averages stay horizontally, but there might be a further increase. The important levels that prevent the rise are located at 1199 and 1217. The important level that prevents the fall is located at 1191. 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.