07, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The trend line 1.3860 breakthrough downward opened the way to the resistance level 1.3900 to which the price is coming on decreasing volumes.
We expect a short-term consolidation with little pullback to testing rising trendline 1.3860.

The first support is 1.3900, the next one is 1.3860. The resistance is 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 pointing up, indicating the current uptrend movement rates.

Trading Recommendations

How strong the tested trend line is it will be known during the number of fundamental data release. If using news factor buyers are able to break above 1.3900, the further movement will open the way to 1.4000.