04, February 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The escape from the risky assets alongside with the favorable statistics supported the EUR/USD. In particular, the Germany Unemployment Rate fell to a 20-year low at 6.2% versus the forecast of 6.3%. The Eurozone same index fell to 10.4% from 10.5%. The Producer Price Index fell to 3.0% against the expectations of -2.8%.

The first support lies at 1.1050 and then at 1.0925. The first resistance stands at 1.1150, the next one is at 1.1260

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement forming a “Golden Cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is growing.

Trading recommendations

The pair can grow to the resistance level of 1.1150. After breaking 1.1150 the buyers may go to 1.1260.