04, December 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The single currency is generally supported by the Eurozone annual inflation data that had risen only by 0.1% in November, increasing pressure on the ECB making it take steps to strengthen the weakening recovery in the region. If to believe to the November euro area preliminary release the monetary authorities can expand the QE program soon.

The pair fell from the resistance level of 1.0630 to the support level of 1.0550. Then the pair sharply increased to the resistance level of 1.0925.

The price is finding the first support at 1.0800, the next one is 1.0730. The price is finding the first resistance at 1.0925, the next one is at 1.1050.

There is a confirmed and a strong buy signal. The price is above the 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 growing.

Trading recommendations

The potential growth targets are the resistance levels: 1.1050, 1.1150.