10, September 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The demand for the “risky assets" is a negative factor for the euro. In addition, the bond market is sending negative signals for bulls. The US and German 10-year government bond yields are increasing that reduces the European assets investments’ attractiveness and do not support the demand for the euro.

The pair’s corrective movement stopped. The pair rebounded downwards and tested the support level of 1.1150.

The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1325.

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 downward 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 neutral territory. The price is decreasing.

Trading recommendations

The potential decrease targets are two levels of support: 1.1050 and 1.0925.