08, October 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

There was the US and the Germany 10-year government bond yields decrease in credit market that reduces the European assets investments’ attractiveness. The US bond market still cannot come down from the weak employment data. The German 10-year government bond yields are growing in relation to their UK counterparts which has a positive effect on the pair EUR GBP in general and on the single European currency in particular.

During the day bears managed to return the pair below level of 1.1260. The price shows correctional southern movement.

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.

We still do not have a clear signal. The price is above the Cloud now and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen are horizontal. We shall wait the pair to leave the Cloud to see the direction to trade further.

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

Trading recommendations

The pair is in a flat right now. The first growth target is the level of 1.1260. Shall the pair decrease it might go to 1.1150.