11, September 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro interest rose slightly during the session on Wednesday. The European currency has strengthened against the dollar and almost closed the previous day loss. Obviously, this fact can be related to the technical factors influence as economic and political background for the euro remains negative.

The buyers were able to push the price to last week low - the resistance level of 1.2930. The price went up to this level on the background of the low volumes and the pair bounced downwards.

In the absence of a fundamental factor today the trade may pass amid the low volatility. We expect the EUR/USD to consolidate below the current support level of 1.2930.

The price is finding the first support at 1.2850, the next one is at 1.2790. The price is finding the first resistance at 1.2930, the next one is at 1.3000.

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 an upward movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The downward movement will be continued if there is a long-term consolidation below the level of 1.2930. The first target is the level 1.2850, the next one is 1.2790.