04, November 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The attitude towards the euro has not changed - the single currency ended last week with the continued fall against the dollar. The weak economic data from the leading EU countries strengthened pressure on the euro in the early trading.

The sellers approached to the support level of 1.2500 amid the high volume. This level is the October minimum and it was broken through.

The strong support breakthrough points towards the bearish trend continuation. It is likely to expect the level of 1.2500 retest acting as resistance.

The price is finding the support at 1.2400. The price is finding the first resistance at 1.2500, the next one is at 1.2600.

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

Trading recommendations

The downward movement will be continued. The pair may go to 1.2400 soon.