10, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro continues to show strong resistance against the negative data. Late last week, the euro was traded in the narrow sideways range, and, in general, the good data on employment in the United States triggered the euro short-sell within the formed corridor. The euro immunity on the negative information causes various assumptions at the market, most of which are boiled down by the fact that the ECB measures are positive for the European financial assets such as stocks and bonds of the peripheral countries, and maintains the demand for the single currency.

The support level 1.3575 proved insurmountable for the single currency. The false retest level accompanied by active bounce against the background of the increased volume for the last 5 trading months.

There is a confirmed and strong sell signal. The price is below the Cloud and it is under the Chinkou Span. The downtrend movement will be until the price is below the Kijun-Sen. The Kijun-Sen is directed horizontally. The Cloud is descending.

The price is finding the first support at 1.3520, the next one is at 1.3480. The price is finding the first resistance at 1.3570, the next one is at 1.3610.

The MACD indicator is in a negative territory. The histogram is descending.

Trading recommendations

At the current time everything depends on the resistance level 1.3680. Judging by the volume with what buyers are going to test the 1.3680 mark anything can happen.

The 1.3680 breakthrough opens the way to the following marks: 1.3715, 1.3790.