03, February 2015

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The United States will publish the manufacturing sector ISM report. The low demand for the commodity market makes us think that we will get the release within the forecasted medians. In this regard, the US dollar bulls will remain without strengths and we can expect the moderate demand for the single European currency.

The most part of the last week the trade was within the flat after a slight upward correction to the support level of 1.1170. The flat continued on Monday.

The price is finding the first support at 1.1300, the next one is at 1.1170. The price is finding the first resistance at 1.1400, the next one is at 1.1520.

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 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 level of 1.1400 test is more likely to lead to the support levels of 1.1300, 1.1170 return.