02, December 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The traders’ attention will be focused on the ISM manufacturing index release. We received the US weak industrial production in October and against this background we can expect a decrease in the number of optimists among the manufacturing purchasing managers.

The trade within the euro/dollar is towards the downward trend line of 1.2500 that serves as the medium-term trend movement guideline.

The price is finding the first support at 1.2400, the next one is at 1.2300. The price is finding the first resistance at 1.2500, the next one is at 1.2600.

There is a non-confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a neutral territory. The price is increasing.

Trading recommendations

The downward movement will be continued. The pair may go to 1.2400 soon.