08, September 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The trades were determined by the debt and equity markets dynamics. The US two-year bond yields, reflecting the Fed rate expectations are confidently growing that will support the demand for the dollar. On the contrary, the stock market is showing a negative trend which in turn is a positive factor for the euro as a funding currency.

The price started the weak upward correction. The resistance level o 1.1150 was broken upwards.

The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1325.

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 and the Kijun-sen show a horizontal movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The potential decrease targets are two levels of support: 1.1050, 1.0925.