10, October 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro fell again at the end of the trading day. Earlier during the FOMC meeting minutes’ publication the US dollar weakened sharply towards the major currency pairs, breaking through the strong levels. The euro received some support with the some long dollar positions closing after the FOMC meeting minutes’ publication.

The resistance level was the downward trend line of 1.2670 for the EUR/ USD. Technically, the trend line break through has led to the downward trend upward turn. We expect the price growth to the nearest resistance level of 1.2850 in the long term.

The price is finding the first support at 1.2670, the next one is at 1.2600. The price is finding the first resistance at 1.2730, the next one is at 1.2790.

The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movment and the Kijun-sen shows a horizontal movement.

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

We believe the growth will be continued now. The first target is the level 1.2850.