08, October 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The single European currency has grown against the US dollar and started a consolidation. The technical levels have supported the euro/dollar and, in fact, the pair returned to its positions which were lost earlier.

The Germany industrial orders sharply fell in August. The PMI industrial sector grew to the lifting area in September.

The pair EUR/USD is correcting to the downward trend line of 1.2700.

The price is finding the first support at 1.2600, the next one is at 1.2500. The price is finding the first resistance at 1.2670, the next one is at 1.2730.

There is a confirmed and a weak sell signal. The price is on the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward 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 neutral territory. The price is consolidating.

Trading recommendations

The approach to the support levels 1.2600 or 1.2500 may lead to the price rebound upward.