10, December 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The traders’ attention will be focused on the bond market dynamics. Yesterday the Brent oil set a new five-year low that again increases the downside risks for the euro area inflation. Against this background we have observed the US and Germany bond yields expansion that is a negative factor for the single European currency.

From the technical point of view the bearish trend is still relevant. The upward correction was formed in the short term.

The price is finding the first support at 1.2300, the next one is at 1.2200. The price is finding the first resistance at 1.2400, the next one is at 1.2500.

There is a confirmed and a weak sell signal. The price is under the Cloud and it is under 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 neutral territory. The price is increasing.

Trading recommendations

We expect the 1.2400 line break that will open the way for the buyers to 1.2500.