01, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro selling versus the dollar took place only in the first half of the trading. The second part of the session has already demonstrated the single currency buying and its loss return. Obviously, a negative attitude towards the euro, which was provoked by the members of the ECB hints at possible mitigation policies caused the Euro selling for several days, weakened somewhat in anticipation of the beginning of the week.

The first support level is 1.3710, the next one is 1.3670. The first resistance is 1.3800, the next one - 1.3860.

There is a strong southern movement. The price is below the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen is directed down and the Kijun-Sen is horizontal.

MACD histogram is still in negative area showing a sell signal. The indicator is growing.

Trading recommendations

The long positions with the first target 1.3800 are the main goal. When the price consolidates above the first target it will grow to 1.3860.