06, April 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro was sold off amid the weak data from the euro zone and the dovish comments by the ECB speaker. Praet (the ECB representative) pointed to the risks of keeping a low inflation for a long time. Praet’s performance also put pressure on the single currency. However the pair was trading in a flat. Non-Manufacturing PMI showed 53.1 vs. the forecast of 54.0.

The first support lies at 1.1350 and then at 1.1260. The first resistance stands at 1.1450, the next one is at 1.1550.

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The pair can grow to the resistance level of 1.1450. After breaking 1.1450 the buyers may go to 1.1550.