09, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro grew amid the German industrial production and the eurozone investor confidence growth. Industrial production grew in Germany in February by 0.4 % compared to January, exceeding expectations of growth by 0.3 %. Industrial production has been growing in Germany 4 months in a row. Manufacturing production rose in February by 0.5 % m/m Germany's economy has strengthened significantly in the first quarter of this year amid the euro zone recovery.

The support is 1.3760. The resistance is 1.3800.

There is сconfirmed and weak sell signal. The price is in the Cloud and above the Chinkou Span. The downward movement will be until the price is in the Cloud. The Kijun-Sen is crossing the Tenkan-Sen down. The cloud is descending.

MACD histogram is in positive zone slightly growing.

Trading recommendations

We believe the level 1.3800 will stop the growth at least temporary. We expect a bounce down to 1.3760. If the growth is continued the pair will go to 1.3860.