04, September 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The euro showed stability against the dollar and ended the day on the opening price. Obviously the strong technical levels and the uncertainty about the rate results expectations from the ECB meeting which ends on Thursday supported the European currency. However during the afternoon trading the euro was under the pressure and the euro/dollar fell even to the new daily low.

The buyers broke through the downtrend channel upper bound at the level of 1.3130. Thus, the price is out of the downtrend channel that limits indicates the corrective rally up formation.

The price is finding the first support at 1.3130, the next one is at 1.3070. The price is finding the first resistance at 1.3170, the next one is at 1.3230.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under 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 fixing.

Trading recommendations

The potential growth targets are the resistance levels: 1.3170, 1.3230.