09, May 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Industrial production in Spain slightly supported the euro last Friday (2.8% vs. forecast 1.7%). Meanwhile, the Fed rate expectations are too pessimistic and the ECB policy does not respond completely to the current economic situation. The USA published Non-Farm (160K vs. expectations 202K).

The first support lies at 1.1350 and then at 1.1260. The first resistance stands at 1.1450, the next one is at 1.1550.

There is a confirmed and a weak 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 forming a “Dead Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The downward movement will be continued. The pair may go to 1.1350 soon, the next target will be the level of 1.1260.