01, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro fell against the dollar under the good U.S. economy data at the time when the own messages have not been able to support the EU economy. The euro support came after Fed sentiment reports to keep the monetary policy soft. This stopped the euro/dollar decline, but did not allow it to get rid of losses. The euro continues to decrease against the dollar at higher volumes. The trades still go on the descending channel direction which upper bound of 1.3380-1.3400 shows the price corrective growth.

The price is finding the first support at 1.3360, the next one is at 1.3290. The price is finding the first resistance at 1.3420, the next one is at 1.3480.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Cloud. The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

The upward bounce potential target is 1.3420. If the price falls it will get to 1.3360. The way to the mark 1.3290 will be opened after this breakthrough.