08, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The single European currency grew slightly against the dollar and actually leveled losses it had last week. The weak economic data from Germany did not stop the euro bulls and as well as the ECB members statements signaling the need to increase the monetary policy easing.

Almost a month the EUR/USD bounces from the level of 1.3595. This level was broken down once, but the breakthrough had not been continued for long. The reverse return above the price level was followed by a strong growth.

The price is finding the first support at 1.3570, the next one is at 1.3520. The price is finding the first resistance at 1.3610, the next one is at 1.3670.

There is a confirmed and strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The downward movement will be until the price is under the Kijun-Sen.

The MACD indicator is in a negative territory.

Trading recommendations

The downtrend is being continued. The target is 1.3570.