09, February 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

This Monday was rather meager at the events. The Eurozone GDP data for Q4 will probably not show signs of growth expansion. According to the forecast the GDP shall increase by 0.3% q/q, like in Q3. The recent data showed the both consumers and the business community recent downward trend, so it is unlikely that the growth will be significantly higher in the 1st quarter.

The first support lies at 1.1150 and then at 1.1050. The first resistance stands at 1.1260, the next one is at 1.1350

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We advise to consider long positions with the first target – 1.1260. After fixing above the first target, the level 1.1350 will become the next one.