02, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The single European currency grew up versus the dollar on yesterday's trading. At the same time, the investors did not actually pay attention to the evidence of the price pressure, continuing to fall in the EU, which is fraught with the deflation advent.

The first support is 1.3760, the next one is 1.3710. The first resistance is 1.3800, the next one is 1.3860.

There is a strong southern movement. The price is below the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Kijun-Sen is crossing the Tenkan-Sen down forming a “Dead Cross”. That is a good sell signal.

MACD histogram is still in negative zone slightly growing.

Trading recommendations

To continue the downward trend, the sellers need to break the support level 1.3760. If this happens, the way to the next support level - 1.3710 - 1.3690 will be opened.

To grow the pair needs to break through 1.3800. Still we do not believe in this scenario as bulls’ power is exhausting. We expect downward movement resumption.