01, February 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Due to the lack of important macroeconomic statistics we shall pay our attention to the world's leading stock exchanges dynamics. Last Friday investors' attention was focused on two reports: the first euro area inflation estimate (the data came in at the forecasted median 0.4% y/y) and the US GDP Quarterly Report.

The fourth quarter US GDP preliminary data was expected with strong slowdown from 2.1% to 0.8% but it came in at the level of 0,7%.

The first support lies at 1.0800 and then at 1.0730. The first resistance stands at 1.0925, the next one is at 1.1050.

There is a non-confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

It may continue the downward trend in the short term. The potential targets are 1.0800 and 1.0730.