02, February 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

According to Draghi the euro zone economy recovery should be supported by the effective policy. In addition, he noted that the fiscal policy should contribute to the recovery process as well.

The euro was not surprised by the euro area inflation data. The consumer prices rose 0.4% y/y against the previous value of 0.2%. The core inflation accelerated to 1% in line with expectations. The euro zone published the Markit January Manufacturing PMI: the data came in at 52.3, in line with expectations.

The first support lies at 1.0800 and then at 1.0730. The first resistance stands at 1.0925, the next one is at 1.1050.

There is a non-confirmed and a weak buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement forming a “Dead Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We suppose the pair will be trading in a side corridor between the levels of 1.0925 and 1.0800.