07, March 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The positive reports from the euro zone supported the euro. Service PMI rose to 53.3 from 53.0, while retail sales increased by 2.0% y/y, when analysts expected a slowdown in growth by 1.3% from 2.1% in January. We believe that the weak US data were a driver of the pair’s growth.

The first support lies at 1.0925 and then at 1.0800. The first resistance stands at 1.1050, the next one is at 1.1150.

The price is in the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement.

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

Trading recommendations

The downward bounce potential targets are 1.0925 and 1.0800.