03, March 2015

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The market's attention will be focused on the US and European business activity index as well as on the new signals regarding the Federal Reserve future rate hikes.

Earlier the Atlanta Federal Reserve Bank president Dennis Lockhart said that he expected the Fed interest rates increase during the summer months, though, he believe that this decision would need additional confirmation from the macroeconomic data.

The signal for correction is the downward channel lower bound of 1.1170 testing.

The price is finding the first support at 1.1170, the next one is at 1.1040. The price is finding the first resistance at 1.1300, the next one is at 1.1400.

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 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 consolidating.

Trading recommendations

The potential correction target is the resistance level of 1.1300.