09, September 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro declined against the dollar at high volumes. Moreover, the general USD majors pairs' correlation is directed towards the dollar strengthening.

The trend line of 1.2980 – 1.3000 break should be highlighted. The sellers were able not only to break down such a strong support, but lowered the price for 240 points down.

The price is finding the support at 1.2850. The price is finding the first resistance at 1.2930, the next one is at 1.3000.

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

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

Trading recommendations

The potential decrease target is the support level of 1.2830 – 1.2850. This level test may lead to a price consolidation.