03, October 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

This week main event was the ECB meeting results announcement. All market participants' attention was focused on the press conference by the ECB President Mario Draghi.

The latest CPI index release showed the inflationary pressure reduction in the euro area to 0.3% and now the investors are looking forward to the further measures being implemented, directed to prevent the deflation threat.

It is planned the EUR/USD corrective growth rate. The bullish views are getting more popular.

The price is finding the first support at 1.2600, the next one is at 1.2500. The price is finding the first resistance at 1.2670, the next one is at 1.2730.

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 shows a upward movement and the Kijun-sen shows 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

The level of 1.2730 retest may lead to the price rebound down. We do not exclude the fall to 1.2600. The way to the mark 1.2500 will be opened after this breakthrough.