07, January 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

We noted the bearish sentiment prevalence. The weak November euro area inflation data contributed to the US and Germany government bonds growth reducing the investments attractiveness in European assets putting pressure on the single European currency. The trades were determined by the services ISM (55,3 against the forecasted median 56,0) and the US Energy Department releases (-5,085М against the forecasted median 0,439М).

The first support lies at 1.0730 and then at 1.0630. The first resistance stands at 1.0800, the next one is at 1.0925.

There is a confirmed and a strong sell signal. The price is below the Ichimoku 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 below the Cloud.

The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

After the support level of 1.0730 breakthrough down the way to the support 1.0630 will be opened.