04, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The single European currency fell versus the dollar yesterday. Probably the market is experiencing great doubts about the ECB immutability which is being discussed now and will be announced later today. Probably the rumors that the European regulator may take steps to reduce the risks of deflation, are forcing investors to correct their positions.

The support is 1.3710. The next one is 1.3670. The resistance is 1.3760.

There is a strong southern movement. The price is below the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen is crossing the Kijun-Sen down forming a “Dead Cross”. That is a good sell signal.

MACD histogram is still in negative zone slightly decreasing.

Trading recommendations

As long as the price is trading in the downward channel sellers remain strong. The current downward target is 1.3670.