01, October 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The lending increase has been observed in the European banking sector for the last six months. Still the current levels are still low enough for the inflationary pressure increase. The world leading stock exchanges negative sentiment will contribute to the pair EUR/USD gradual decline as the shares sales will support the demand for the euro as a funding currency.

All day trades were on a decrease. The price rebounded from the resistance level of 1.1260 to the support level of 1.1150 and did not even test it.

The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1325.

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 shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a neutral territory. The price is correcting.

Trading recommendations

We expect the 1.1050 line break that will open the way for the sellers to 1.0925.