05, November 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The single European currency held the trading against the dollar in the side consolidation and was closed with a minor plus at the end of the day. The technical factors presented by the strong support levels where the euro/dollar fell supported the euro.

The bulls broke through the strong resistance level of 1.2500 upwards within the euro in the short term. At this moment the insignificant breakthrough is not supported by the trade volumes.

The price is finding the first support at 1.2500, the next one is at 1.2400. The price is finding the first resistance at 1.2600, the next one is at 1.2670.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is below the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

We advise to short with the first target – 1.2500. After fixing below the first target, the level 1.2400 will become the next one.