04, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The strong support level of 1.3665 stopped the euro corrective decline against the U.S. dollar. The level breakthrough has opened the way to another support located at around the level of 1.3635 in the short term.

It should be noted that the corrective trade volumes pullback is not supported. This means that the closest support can deploy the downward roll back up. The fundamental factor plays an important part.

We should focus on the EUR interest rate announcement. There will be the ECB press conference and there will be released a particularly important news number for the USD.

The price is finding the first support at 1.3610, the next one is at 1.3570. The price is finding the first resistance at 1.3670, the next one is at 1.3710. The price is in the Cloud and it is above the Chinkou Span. The downward movement will be until the price is under the Kijun-Sen.

The MACD indicator is in the neutral territory.

Trading recommendations

From a technical point of view we may expect the lower bound uplink retest of 1.3610. If the channel knocks down, the upward trend will be continued. The main growth targets are: 1.3665, 1.3700, 1.3720.