08, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

A short-term strong resistance level 1.3950 test formed in March led to the price rebound downward. The level retest occurred on lower volumes, as well as a general correlation of market movements against the U.S. dollar is losing its positions.

The first support is 1.3900, the next one is 1.3860. The resistance is 1.3950.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span.

The uptrend movement will be until the price is above Kijun-Sen.

The MACD histogram is pointing up, indicating the current uptrend movement rates.

Trading recommendations

The nearest rebound target from the level 1.3950 is a rising trendline 1.3910. The approach to the trend is more likely to be accompanied by a bounce up with the target 1.3950 as a strong resistance.

The key milestone for the pair is the resistance level 1.3950. How strong the level is we will know soon. The breakthrough will open the way to 1.4000, 1.4030.