24, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

There was volatile trend on major pairs on the Forex market yesterday. The EUR/USD strengthened by 0.1% amid the manufacturing sector PMI moderately positive report in Germany, as well as due to the U.S. housing sales in the primary market negative statistics. In March this number dropped to 14.5%, which casts doubt on the uptrend on consumer confidence in the United States.

The GBP/USD was in the sales wave after the Bank of England published its minutes, despite the fact that the comments were moderately positive. Being unable to consolidate above the strong resistance level 1.6822 – the “bears” decided to attack the British currency, allowing the price to reach 1.6761 in a moment. The consolidation is observed during the U.S. trading session.

The “bearish” correction put pressure on the USD/JPY. The USA negative housing sales in the primary market report added fuel to the fire. The “bears” didn’t have enough strength for the next fall, and there was a moderate demand for the pair dollar/yen.