10, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The European currency was traded against the dollar in a sideways and even at some moments demonstrated the attempts to grow. Probably, the weak U.S. bond yields which is the stable downward pressure for the dollar influences the euro/dollar now. It wasn’t published a lot of the Eurozone economic news, in fact, all the information was presented by Germany on the foreign economic relations results in May.

The price is finding the first support at 1.3610, the next one is at 1.3570. The price is finding the first resistance at 1.3670, the next one is at 1.3710. There is a confirmed and weak sell signal. The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement, and the Kijun-sen – downward. The Tenkan-sen crosses the Kijun-sen and forms the “Golden cross”. The downward movement will be until the price is under the Clound.

The MACD indicator is in a neutral territory.

Trading recommendations

The upward trend is not supported by volumes, but the buyers could break above the resistance level of 1.3610 yesterday.

We expect a strong support and resistance levels false breakouts. If after the news impulse is over the buyers break above the level of 1.3635, the growth will be continued with the targets - 1.3665, 1.3700 in a long term.