09, November 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro area consumer prices fell by 0.1% in September, but in general it showed zero dynamics in October, despite the asset purchase program worth 60 billion euros per month which the ECB has launched 7 months ago to revitalize the inflation growth. The Germany manufacturing sector orders have also showed the third month decline in a row. The weak data reinforced concerns about the China slowdown and other key emerging markets decline started to have a negative impact on the European largest economy.

The price is finding the first support at 1.0730, the next one is 1.0630. The price is finding the first resistance at 1.0800, the next one is at 1.0925.

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 shows a horizontal movement and the Kijun-sen shows a downward movement and form a “Dead Cross”. 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 NFP came out with better than the forecast results. That news supported the dollar. The NFP gave the pair an additional impetus downwards. The first downward movement target is 1.0630. Still pullbacks towards 1.0800 are possible.