11, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The important economic data from Europe and other regions absence, as well as minutes of U.S. meetings yield expectations caused the continued range trading on the euro/dollar. The hopes that the activity will return to the market amid the politicians speeches have not been justified - neither speech the ECB’s President Draghi nor his colleagues, members of the ECB Governing Board B. Kerr and P. Pratt did not change the situation. The ECB functionary's statements concerned largely the power centralization topics in the region and its authority strengthening to force EU governments to reform their economies to recovery.

The situation has been changed after the FOMC minutes publication - the euro rose as it became known that the document did not have anything about a possible rate increase.

The price is finding the first support at 1.3570, the next one is at 1.3520.

The price is finding the first resistance at 1.3610, the next one is at 1.3670. There is a confirmed and strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form the “Golden cross”. The downward movement will be until the price is under the Cloud. The MACD indicator is in a neutral territory.

Trading recommendations

If the price consolidates above 1.3610 the next target will be the resistance located at 1.3670.