07, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The European currency fell against the dollar, despite the fact that the economic indicators of June and July showed a positive trend compared with the previous period. The retail sales in the euro zone rose in June by 0.4% against the results of May and the data of the second month of spring have been revised upwards. The single currency against the American dollar corrective gains proved not for a long time. A short-term price consolidation below the resistance level of 1.3430 to which the buyers have come on a heavy volume resulted in the downtrend continuation. The sellers renewed the minimum of the last week at the level of 1.3385 and fixed below the current support level of 1.3360.

The price is finding the first support at 1.3360, the next one is at 1.3290. The price is finding the first resistance at 1.3420, the next one is at 1.3480.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement and form a “Dead cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

If the price fixates below the support 1.3360, it may continue the downward trend in the short term. The potential target is 1.3300.