10, April 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Germany published the February industrial production release. The industrial production increased by 0.2% m/m in February after a decrease by 0.4% in January while it was early reported a growth by 0.6%. The Germany economy is the euro area economy engine, but it cannot be as strong as it was thought. It is worth noting that there are not enough factors that can support demand for the US dollar now.

The resistance level of 1.1050 testing was followed by the euro active reduction against the US dollar. Despite the reduced volume, sellers were able to break through the support near 1.0670.

The price is finding the first support at 1.0550, the next one is at 1.0420. The price is finding the first resistance at 1.0670, the next one is at 1.0790.

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 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 falling.

Trading recommendations

We expect the 1.0550 line break that will open the way for the sellers to 1.0420.