07, April 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The weak Service PMI in the Eurozone pressured the euro. The index fell to 53,1 from the previous value of 54,0, analytics expected the index to remain unchanged. The news that OECD lowered its forecasts regarding the German GBP growth in 2016 and 2017 pressured the euro as well. Even though the euro fell amid the mixed economic data it managed to recover some of it losses by the end of the day.

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 and the Kijun-sen show a horizontal movement forming a “Dead Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We believe the growth will be continued now. The first target is the level 1.1450, the next one is 1.1550.