06, January 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The pair EUR/GBP strong quotations growth on Friday should attract the bulls’ attention. However, the level of 1.2000 is a strong resistance and its growth potential will be limited by this area.

The traders’ attention will be focused on the Germany inflation data.

The current week opened with a gap according to this instrument. The gap was formed at the round level of 1.2000 that is quite strong level for major market participants.

The price is finding the support at 1.1850. The price is finding the first resistance at 1.1950, the next one is at 1.2000.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward 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 decreasing.

Trading recommendations

The potential growth target is the resistance level of 1.2000.