02, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The support level 1.3790 was tested for strength three times before the price rebounded from 90 points up from it. Due to the fact, that the overall correlation is aimed at the dollar reducing, this rebound will be the rising trend in the euro continuation.

The first support is 1.3860, the next one is 1.3800. The first resistance is 1.3900, the next is one 1.3950.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span.

The uptrend movement will be until the price is above Kijun-Sen.

The MACD histogram is pointing up, indicating the current upward price movement.

Trading Recommendations

The trading continues above the downward trend line 1.3865. Such a strong resistance breakthrough opens the way to the nearest resistance level 1.3900.

The GDP/USD was weak from the fundamental point of view. This means, the U.S. dollar can continue to lose its positions that in the future. Regarding the EUR, it is likely to expect the resistance level 1.3950, the last month maximum retest.