02, October 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro fell by 0.11 %, losing 3.82 % in September, which has been the worst result for more than two years. Euro Area annual inflation rate fell to 0.3 percent in September from 0.4 percent in August.

The downward trend, supported by trade volumes, is still relevant.

There was a price fall at 1.2660 followed by a consolidation amid the EUR fundamental data (German Unemployment Change).

The price is finding the first support at 1.2600, the next one is at 1.2500. The price is finding the first resistance at 1.2670, the next one is at 1.2730.

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 shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The price is likely to go to the downward trend line 1.2500.