10, July 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

We may pay attention to the May Germany trade balance data. The industrial production growth with the low euro exchange rate is a positive factor for the trade balance. If we pay attention to the seasonal factor, we will observe the traditional net exports growth in May.

The euro was correcting against the US dollar after the support level of 1.0925 testing. The corrective price increase enabled buyers to reach the level of 1.1150. After that the price started to decline again, breaking in its path the support of 1.1050. The level of 1.1050 is already a resistance.

The price is finding the first support at 1.0925, the next one is 1.0790. The price is finding the first resistance at 1.1050, the next one is at 1.1150.

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 an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden 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

If the price fixates below the level of 1.1050, it may continue the downward trend in the short term. The potential targets are 1.0925 and 1.0790.