08, February 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Germany published the production orders latest figures: -0,7% against the forecasted -0,5%. Earlier, neither the European Commission pessimistic forecasts nor the lack of risk aversion stopped the single currency from growing. The US data supported the euro as well. The Factory orders fell by 2.9% from the November value of -0.7%, the NFP grew by 3.0% against the forecast of -1.8%.

The first support lies at 1.1050 and then at 1.0925. The first resistance stands at 1.1150, the next one is at 1.1260

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

If the price fixates below the support 1.1050, it may continue the downward trend in the short term. The potential targets are 1.0925.