18, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The dollar lost some ground relative to its main competitors. The EUR/USD was trading in the range 1.3512 - 1.3578 for three consecutive trading days, indicating the positions set by institutional investors. Professional traders with large capital need much more time to build positions than simple traders. This factor indicates that we will see the euro strong downward movement in the near future.

The GBP/USD pair has set a fresh high for the past 5 years at the level 1.7009, after which there was a technical bounce against the long positions closure. However, the trend reversal has occurred - the upward trend is still in force. In the absence of important macroeconomic statistics publication from the UK and U.S. trading day ended with almost the same place where it began.

After a decrease at the Asian trading session to the mark 101.71 - the short-term demand appeared in the USD/JPY pair, which allowed the U.S. currency to recover some lost ground. The release of U.S. industrial production for May came in at a forecasts median that did not cause a strong reaction on the market participants’ side.