02, November 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro fell sharply, having lost more than 100 points in a few minutes when the Federal Reserve left interest rates unchanged. The dollar rose after the decision to keep the monetary policy unchanged, moreover, the regulator noted that they would decide the further plans for the rates at the next meeting. In this situation, the euro suffered the most of all and fell sharply against the dollar, the pound and the yen. The data have shown that the November consumer confidence index, calculated by Gfk, came out at the forecasted level and was 9.4 while the previous figures showed 9.6 in October.

The first support is at the level of 1.0925, the next one is at 1.0870. The resistance levels are 1.1050 and 1.1150.

We have a strong and confirmed sell signal. The price is below the Ichimoku Cloud. The pair is under the Chinkou Span. The Tenkan-sen is crossing Kijun-sen upwards; two lines are forming the “Dead Cross”. The pair will show the southern movement until it is below the Cloud.

The MACD indicator is in a negative territory. The histogram is growing.

Trading recommendations

The resistance – 1.1050 is our first growth target. We expect the pair to keep falling. The decrease targets are 1.0925 and 1.0870.