01, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The Euro grew against the dollar. The pair was trading in the multi-directional fluctuations in a narrow sideways range. Obviously, the need to correct the position before the end of the quarter was more significant than the fear for the EU economy caused by the weak economic sentiment data published in the last trading day.

The buyers could not break above the strong resistance level of 1.3635 for two weeks. The price level was bounced down twice, and the third time amid the low volumes it managed to consolidate above this mark.

The price is finding the first support at 1.3670, the next one is at 1.3610. The price is finding the first resistance at 1.3710, the next one is at 1.3765.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen.

The MACD indicator is in the positive territory.

Trading recommendations

The resistance 1.3635 break opens the way to the next resistance - 1.3710 mark in the short term.

The mark of 1.3670 breakthrough is a good sign for a upward trend. The potential upside target will be performed by the resistance level of 1.3700 - 1.3720.