03, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The strong resistance level of 1.3665 breakthrough was followed by the price pull back. There is a corrective decline rate, which is not supported by trading volumes, to the mark 1.3665 which already serves as a strong support.

The support level of 1.3665 main retest could likely occur during the fundamental data release on EUR (GDP). The short-term level retest may lead to further consolidation with price bounce up.

The price is finding the first support at 1.3610, the next one is at 1.3570. The price is finding the fierst resistance at 1.3670, the next one is at 1.3710. There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen.

The MACD indicator is in the positive territory.

Trading recommendations

The pair is going upwards. As long as the price is trading in the upward channel buyers remain strong. The bulls’ targets are the levels of 1.3710 and 1.3760.