01, March 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro got under pressure due to strong USA reports and disappointing macro data from the euro zone. The consumer confidence level came in at -8.8, we expected -6.7, economic sentiment index reached 103.8 vs. the previous value of 106.7, and service sector indicator fell to 10.6 from 11.5. Such disappointing figures may become another argument in favor of an additional ECB stimulus policy in March that may lead the further euro losses.

The first support lies at 1.0800 and then at 1.0680. The first resistance stands at 1.0925, the next one is at 1.1050.

There is a 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 negative territory. The price is decreasing.

Trading recommendations

If the price fixates below the support 1.0800, it may continue the downward trend in the short term. The potential target is 1.0680.