07, May 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro zone will not please the traders with the important macroeconomic statistics and the traders’ attention will be drawn to the US data. The agency ADP issued the private sector employment release. Traders awaited the ADP positive data release which would support the US dollar. Still the release was a negative one that supported the euro and the pair grew.

The debt and commodity market dynamics indicates the uptrend within the single European currency. The Brent crude oil breaks through this year new highs which is a negative factor for the dollar.

The euro demand reversed towards the uptrend. The reversal came after the support level false breakthrough of 1.1150 amid the increased volume.

The price is finding the first support at 1.1260, the next one is 1.1150. The price is finding the resistance at 1.1450.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. 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

The potential increase target is the resistance level of 1.1450.