11, March 2015

Fundamental analysis

EUR/USD (a 4-hour chart)

The first part of the week traders fixed the US dollar long positions profits - the dollar index basket (USDX) finished the trading day at the mark of 97.60. The pair EUR/USD could strengthen its position to the level of 1.0906 after significant sales, but then bears returned to the market. The German 10-year bond yields declined to the US and the UK analogues which determined the single European currency destiny.

On the contrary, at the beginning of the week the pair GBP / USD showed a growth. The pair’s sales encouraged bulls to long. The positive trend has been for two days then the pair returned to sales. The pair was trading different directed.

The negative trade balance data and the Japan GDP for the fourth quarter allowed traders to break through the resistance level of 121.60. Due to the net imports strong growth in January, we conclude that the Japan economy has been weakening, despite the strong yen devaluation which had to strengthen export. Nevertheless the pair could not fixate above the level of 121.60 and it fell below it.