07, November 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The new ECB stimulus probability rose after the euro zone economic growth weak data release and the Bank of Japan unexpected decision to stimulate actively the economy.

The sellers have broken through the support level of 1.2500 downwards for the second time and there has been observed the decrease to the level of 1.2400.

The price is finding the first support at 1.2400, the next one is at 1.2300. The price is finding the first resistance at 1.2500, the next one is at 1.2600.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is below the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. 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

The nearest target remains the support level 1.25. If the price fixates below the resistance level of 1.2500, it may continue the downward trend in the short term. The potential targets are 1.2300, 1.2200.