02, December 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

If the USA inflation shows some positive signs, the Eurozne one does not show any signs of activity that threatens the European economy with the big economic problems in the long term. We expect the ECB to enlarge the stimulating measures this Thursday which is supposed to push the inflation upwards. In economic news the Germany PMI manufacturing activity index was published which amounted to 52.9.

The pair started a correction. Sellers have broken through the strong support level of 1.0550. Then, the price jumped upwards. The resistance level of 1.0630 was tested.

The price is finding the first support at 1.0550, the next one is 1.0420. The price is finding the first resistance at 1.0630, the next one is at 1.0730.

There is a confirmed and a weak 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 downward movement will be until the price is under the Cloud.

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

Trading recommendations

If the price fixates below the support 1.0550, it may continue the downward trend in the short term. The potential target is 1.0420.