08, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Last week session the euro selling was continued, as the single currency recorded losses against the "greenback", while were less ambitious than the previous day. Obviously, the emotions caused by the U.S. Labor Market report publication already influenced the euro/dollar rates and the ECB M. Draghi statements that the preparations for the quantitative easing is underway launch work now. This may cause the unconventional measures introduction to stimulate the economy and, consequently, influence a prolonged impact on the market.

The price is finding the first support at 1.3570, the next one is at 1.3520. The price is finding the first resistance at 1.3610, the next one is at 1.3670. There is a confirmed and weak sell signal. The price is under the Cloud and it is above the Chinkou Span. The downward movement will be until the price is under the Kijun-Sen. The Cloud is directed downwards.

The MACD indicator is in the negative territory.

Trading recommendations

The potential decrease target is the resistance level of 1.3610. The potential rebound target is the level of support 1.3570 that could lead to the south trendline movement.