04, May 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro medium-term correction is still in force and bulls still open long positions on dips. The euro zone will not please traders with the important macroeconomic statistics and in this connection the traders’ attention will be focused on the US manufacturing sector business climate publication from the ISM.

The manufacturing sector showed significant decline in the first quarter and taking into account the new industrial orders decrease it is difficult to expect the data better than the forecasted medians. In this regard, the US dollar will not be able to get support and to compensate for some lost ground.

The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1450.

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

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

Trading recommendations

We may expect the fall towards 1.1150 and a consolidation further on we expect a growth.