05, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The strong resistance level 1.3840 and 1.3860 break was on high volumes. But the active upward trend continuation has not occurred, the euro is correcting down on declining volumes.

The first support is 1.3860, the next one is 1.3800. The first resistance is 1.3900, the next is one 1.3950.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span.

The uptrend movement will be until the price is above Kijun-Sen.

The MACD histogram is horizontal, indicating the current corrective movement rates.

Trading Recommendations

The corrective decline will meet a strong support level 1.3840 in the short term. The level will be the key point between the buyers and sellers.

How strong the support 1.3840 is we will find this week. If the pair does not break the level we may expect a rebound upwards. The main growth target is the level 1.3900.