08, January 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The traders’ attention will be focused on the euro area inflation. The Spain and Germany data showed the inflationary pressure compression the last month of 2014. In recent months there was a large-scale oil contracts sale that puts pressure on the CPI.

Buyers have not closed the gap formed at the beginning of the trading week. Currently, two gaps remain closed according to this trading instrument.

The price is finding the support at 1.1770. The price is finding the first resistance at 1.1850, the next one is at 1.1950.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The downward movement will be continued. The pair may go to 1.1770 soon.