Yesterday\'s trading session on the EUR/USD currency pair was in the sideway corridor of 1.4100-1.4184 as I predicted. The Asian trades was conducted at the minimum levels and only after the opening of the European trading session and on the back of positive fundamental dats the Euro could rise to the bottom of the 42nd figure. The American trading session did not clarify anything. The trading day closed with a slight strengthening of the Euro against the US dollar.
The macroeconomic statistics on the Eurozone were mixed. From one side, German CPI did not show any support, as a percentage ratio to the previous month had not changed and appeared at the level of 0.00%. From the other side, German wholesale price index, determining the inflation rate, dropped to -0.50% contrary to experts\' predictions of growing by 0.10%.
Investors and major traders did not perceive the US fundamental data. Since the publication of the non — farm productivity index, which showed the growth by 6.40% higher than experts had expected the European currency declined from the maximum levels of the trading day to 1.4114. Unit labor costs rose by 3.1% and came to the level of -5.80%, which was worse than experts\' expectations.
Another uncertainty at the market appeared due to the stock markets, there were negative sentiments and cheaping price for the oil on Tuesday there.
Now some information about the USA. The Treasury Department offered to enhance the ultimate level of state debt. It is mainly due to avoid the reducing the spendings for economy support and not to create investors\' flap. So the existing within nearly 6 months restriction of $12,1 tln. bacame too strict. Experts think, that positive decision of the Congress will not directly affect either the US economy nor the course of the American currency.
The US FTS announced another idea. It intends to control oil prices, introducing new rules for work at the American wholesale oil market, which will take effect on November 4, 2009. We can only guess how valuable and useful this will be.
In conclusion, let\'s speak a little about China. This country said about the upcoming changes in its fiscal policy: it is supposed to access foreign companies shares to Shanghainese exchange market and to calculate foreign trade transactions in yuans. Thus, these plans will be able to break US dollar position at the world markets in the near future.
Speaking about the technical picture, there are no changes there. The market remains to be at the same level, the sideway motion is more actual at the first part of today\'s trading day. The channel 1.4102-1.4184 and the following after them support levels of 1.4090, 1.4066, where 61.8% correction Fibonacci level is located and resistance levels of 1.4211, 1.4235, then goes 200 day exponential moving average of 1.4277.
Today, pay attention to the important data on the US trade balance and also to the market reaction.
Today I recommend to buy the pair at 1-hour closing timeframe above the level 1.4173 with the target — T/P 1.4215 and S/L 1.4139.
Sell the pair at 1-hour closing timeframe below the level 1.4087 with the target — T/P 1.4004 and S/L 1.4135.
Best regards,
Analyst: M. Magdalinin.
