10, November 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The single European currency could recover a few. Earlier the euro continued to decline against the dollar and fell to the new local lows. The reports that the European Central Bank left its key interest rate at the record low level of 0.05%, initially supported the euro, but the M. Draghi’s press-conference changed the market sentiment and the euro was in the sales wave.

The support level of 1.2400 was broken through. The level breakthrough was amid the high volumes. The pair failed to consolidate below and returned to the position above this support.

The price is finding the first support at 1.2400, the next one is at 1.2300. The price is finding the first resistance at 1.2500, the next one is at 1.2600.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is below the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The downward movement will be continued. The potential decrease targets are the two levels of support: 1.2400 and 1.2300.