05, February 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The escape from the risky assets, coupled with the widespread dollar sales caused the euro growth. The US currency seems to have less faith in the Fed's plans to tighten the monetary policy. According to the European Commission the GDP growth forecast remained at 1.9% in 2017, while the GDP growth forecast for 2016 was revised to 1.7% from previous 1.8%.

The first support lies at 1.1150 and then at 1.1050. The first resistance stands at 1.1260, the next one is at 1.1350

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement forming a “Golden Cross”. 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 buyers need to break above 1.1260 for a steady growth. The way to the mark 1.1350 will be opened after this breakthrough.