07, December 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Besides the monetary policy slight easing the European regulator raised its forecast for the region GDP in the current year to 1.5% from 1.4% while the inflation forecast remained at the level of 0.1%. The 2016 and 2017 inflation forecasts or were revised towards the negative side that deprives the euro opportunities for significant strengthening. According to Mario Draghi the abundance liquidity period will be long.

The support resides at the 1.0800, the next one is 1.0730. The resistance comes in at 1.0925, the next one is at 1.1050.

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 and the Kijun-sen show a horizontal movement. The northern movement will last until the price is above the Cloud.

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

Trading recommendations

We believe the growth will be continued now. The first target is the level 1.3670, the next one is 1.1050.