05, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The pair has been in the downward trend for three month and can change the direction in the short term. The current pullback happened when the price broke the upper boundary.
We should also mention the fact that the price left the downward trend at the increased volume.

The price is finding the first support at 1.3420, the next one is at 1.3360. The price is finding the first resistance at 1.3480, the next one is at 1.3520.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Golden cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

The upward movement will be continued. The upward bounce potential target is the resistance level of 1.3480. We expect the level of 1.3480 retesting soon.