Daily market review for 31.10.2014

EUR/USD remains under strong selling pressure. Today’s inflation statistics in Germany have negatively impacted the euro and added confidence to sellers of the asset. The medium-term stays down, therefore many investors continue to sell the pair. Today’s inflation statistics will affect the euro significantly. GBP/USD, just like EUR/USD, remains under pressure and many investors are likely to consider a further fall. USD/JPY trades positively and there are some tendencies for a further increase in value. Gold remains under strong selling pressure, a further decline is possible.

Market news

Important statistics for the Eurozone, the USA and Canada are expected today. As to the Eurozone, we recommend to pay attention to the Consumer Price Index, the data is expected to be better, than the previous one and can positively impact the euro. As to the USA, we recommend to pay attention to the Personal Spending report, the forecast is negative and can impact the American dollar. As regards to Canada, we recommend to pay attention to the GDP report, the results are expected to remain on the same level, but in case of any negative data, it can influence the Canadian dollar.

Our recommendations

EUR/USD is under strong pressure. Moving averages stay horizontally, but there might be a further decrease. The important levels that prevent the rise are located at 1.2630 and 1.2769. The important level that prevents the fall is located at 1.2546. 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 horizontally, but there might be a further decrease. The important levels that prevent the rise are located at 1.6039 and 1.6159. The important level that prevents the fall is located at 1.5950. We recommend to sell Put Options at the resistance levels and to buy Call Options at the support levels.

 

AUD/USD is again under pressure. Moving averages stay horizontally, but there might be a further decrease. The important levels that prevent the rise are located at 0.8838 and 0.8909. The important level that prevents the fall is located at 0.8754. 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 horizontally, but there might be a further increase. The important level that prevents the rise is located at 109.47. The important levels that prevent the fall are located at 108.80 and 107.99. 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 decrease. The important levels that prevent the rise are located at 1207 and 1225. The important level that prevents the fall is located at 1196. 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.