02, April 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Despite the euro zone inflation positive statistics - the single European currency cannot show any significant increase. The reason for that is the "black gold" bearish sentiment - as long as the Brent crude oil price is not fixed above the level of 57.50 $/barrel we should not expect strong demand for the pair. The US manufacturing sector business activity is of great interest.

Having broken the strong support level of 1.0790 downwards, buyers are trying to correct the price back to the level that had already served as the strong resistance.

The price is finding the first support at 1.0670, the next one is at 1.0550. The price is finding the first resistance at 1.0790, the next one is at 1.0925.

The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

The approach to the level of 1.0790 may lead to a price rebound down. The potential rebound targets are the support levels of 1.0670, 1.0550.