02, September 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The single currency broke the resistance level of 1.3170 last week and fell to the support level of 1.3130 where started trading this week. The short-term level tests have allowed the buyers to close the price gap.

The level of 1.3170 five day retest led to the price bounce down and the further dollar strengthening. The downward trend continued amid the low volumes.

The price is finding the support at 1.3130, the next one is at 1.3070. The price is finding the first resistance at 1.3170, the next one is at 1.3230.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The pair is back to the ‘Dead Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The trend is a down side. We expect the level of 1.3070 testing soon.