06, November 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The attitude towards the euro has changed; the euro has grown against the dollar and other competitors. Perhaps, besides the investors’ desire to take profits on the short positions within the euro in advance of the ECB meeting closure, the EU economic data presented by the Eurozone prices dynamics report supported the euro. However, the European currency fell at the end of the trades.

Buyers have broken through the strong resistance level of 1.2500 upwards. The level breakthrough was amid the reduced volumes and price bounced down, breaking through the level backwards.

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

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 and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The MACD indicator is oversold. The price is decreasing.

Trading recommendations

The approach to the level of 1.2600 may lead to a price rebound down. However the price action does suggest that the potential rebound target is the support level of 1.2400.