14, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The U.S. currency weakened against its major counterparts the other day. As a result, EUR/USD lost more than 0.3 % by the end of the day. The report on industrial production in the euro area showed a decrease in monthly terms and was better than market expectations on an annualized basis. Still the economy is thrown in heat and cold and doesn’t see a steady pace of recovery. Geopolitical tension begins to rise up and now G-7 urged Russia not to support the Crimea referendum, not to violate the Ukraine Constitution. Otherwise, the world's leading powers will impose sanctions on Russia. Investors embraced this fact positively, expecting that Russia would not stand and eventually abandon the Crimea annexation.

On the current week the British currency remains under pressure and serious drivers are needed to continue its growth. Until the market doesn’t get a positive statistics that afflicts the "bull". During the course of the day, "cable " fell own just below the strong support, but then there was a technical rebound, which may indicate the opening of speculative long positions.

USD/JPY has continued falling down, to the aggravation of geopolitical tensions. Futures on the Nikkei 225 stock index during the day steadily declined, which also puts pressure on the U.S. dollar versus the yen. In addition, from the perspective of technical analysis, the dollar/yen looked as a short-term overbought and could be expected to develop a correction to a strong support level.