09, October 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The tone became negative in the market after the report had noted the August sharp German industrial orders decline, raising fears that the eurozone largest economy is falling into a recession. The FOMC meeting minutes were published.

The downward trend line of 1.2670 is a main resistance for this pair. This level retest was followed by the price downward rebound. Buyers came to this downward trend line amid the reduced volume.

The price is finding the first support at 1.2600, the next one is at 1.2500. The price is finding the first resistance at 1.2670, the next one is at 1.2730.

The price is on the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.

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

Trading recommendations

The price is likely to go downward to the level of 1.2600. After breaking 1.3665 the pair may go to 1.2500.