04, May 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The Eurozone did not publish any interesting reports on Tuesday. Producer Price index (PPI) for the last month rose more than expected (0.3% vs the forecast 0.1%). According to the report, it was 0.3% compared with -0.7% in the previous month. Experts had expected a growth rate by 0.1%. The devaluation of the Chinese yuan supported the euro as well. By the end of the trades the euro fell.

The first support lies at 1.1450 and then at 1.1350. The first resistance stands at 1.1550, the next one is at 1.1650.

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 shows an upward movement and the Kijun-sen shows a horizontal 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

The potential growth targets are the resistance levels: 1.1550 and 1.1650.