05, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The single European currency has grown up in yesterday's trading against the dollar. The euro still in a sideways and showed no new levels. However, under unfavorable for optimism statistics from the EU conditions, the fact that the euro strengthening was little understood and generally surprise event. Perhaps the market has already sufficient opened short positions while short-term investors took advantage of strong support to lock in profits.

The downward trend has moved into a side corridor between the levels 1.3645 - 1.3570. While the pair has been trading at the 1.3590 support level for five days. The short-term support retests are accompanied by the price rebounds up.

There is a confirmed and strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The downtrend movement will be until the price is under the Kijun-Sen. The Kijun-Sen is directed horizontally. The Cloud is descending.

The MACD indicator is in negative territory. The histogram is close to the zero level.

Trading recommendations

If the pair keeps falling its targets are 1.3570 and 1.3520. The first target to grow is 1.3670. If today’s ECB meeting does not shock the market the downward movement continues.