05, May 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

There was not any important macroeconomic statistics. We saw a rebound from the strong support level of 94.77 for three consecutive trading days within the dollar index (USDX) that indicates the strong buyers’ presence and the market possible reversal.

The "Greek question" negotiations have tightened, but the Germany and Greece 10-year bond yields decreased significantly in April that point out to the risk reduction which is a positive factor for the euro.

The resistance level 1.1260 has stopped the three-week euro uptrend. The pair rebounded from this level to the support level of 1.1150.

The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1450.

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 a horizontal movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

The approach to the level of 1.1050 may lead to a price rebound upwards.