06, March 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Yesterday’s main event was the ECB meeting results announcement and Mario Draghi’s perfomance. The easing monetary policy started to bear fruit - there was a high private sector credit growth in January. The euro low rate will reflect positively on the trade balance which eventually helped to reduce the unemployment rate to 11.2%. However, it is too early to talk about the economic rates growth.

The Eurozone inflation expectations are still quite low - the German 10-year bond yields are now near historic lows and this factor will put pressure on the pair EUR/USD.

The price is finding the first support at 1.0950, the next one is at 1.0790. The price is finding the first resistance at 1.1040 the next one is at 1.1170.

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 falling.

Trading recommendations

The downward movement potential target is 1.0790. If the price grows it will get to 1.1170