02, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro grew against the dollar - it came out of the side corridor where had been consolidated for a long time, and closed the session having set the new month high. Obviously, such a result can be considered as a surprise as the Eurozone economic statistics published on Monday did not give a reason for an optimism, but it seems that the "bulls" support on the euro was provided by the end of the month funds flows and the adjusting balances.

The price fixing above the resistance level of 1.3640 during for two weeks was a good signal for the uptrend continuation. The euro active growth against the U.S. dollar has allowed buyers to break up another strong level, located at 1.3665.

The price is finding the first support at 1.3670, the next one is at 1.3610. The price is finding the resistance at 1.3710. There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen. The MACD indicator is in the positive territory.

Trading recommendations

We believe the growth will be continued now. The first target is the level of 1.3710. We do not exclude the falls to 1.3610.