04, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The short term support level of 1.3375 suspended the single currency reduction against the American dollar. Double-sellers failed to break below 1.3375 to continue the trend steadily downward.

The trading volumes remain in the growing area, indicating the continued downward trend strength. However, the sellers need to break below the current support level of 1.3375 to confidently continue the downward movement. The pair closed the trading week above the level of 1.3420.

The price is finding the first support at 1.3420, the next one is at 1.3360. The price is finding the first resistance at 1.3480, the next one is at 1.3520.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud. The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

The potential downward movement targets are the support levels: 1.3360, 1.3290.

Currently, the price is trading above the resistance level 1.3420 which has already become the support. The potential growth target is the resistance level of 1.3480.