06, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The “bears” were outwit last week when positive fundamental data on the USD came out. On positive news for the U.S. dollar, the euro is actively rushed down, but, ultimately, trading closed in the “bulls”’ favor.

The first support is 1.3860, the next one is 1.3800. The first resistance is 1.3900, the next is one 1.3950.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span.

The uptrend movement will be until the price is above Kijun-Sen.

The MACD histogram is horizontal, indicating the current corrective movement rates.

Trading Recommendations

The trading was closed with a trend line break 1.3865. This breakthrough gives a good sign for the traders to continue the upward trend with the goal - the resistance level 1.3930, which was the maximum on March.