01, September 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The Eurozone economy reports have put a pressure on the European single currency which lowered the euro/dollar. The reason for this disappointment came from Germany and the European Commission studies on the European bloc economy sentiment.

The buyers finally managed to close the price gap. Once the gap was closed, the price immediately dropped to the support level of 1.3130.

The price is finding the support at 1.3130, the next one is at 1.3070 The price is finding the first resistance at 1.3170, the next one is at 1.3230.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show 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

The downward movement will be continued. The pair may go to 1.3070 soon.