12, January 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The weak Germany data pressured the euro. In particular, the Germany industrial production fell by 0.3% in November despite the forecast of 0.5% y / y, while the trade surplus narrowed to 19.7 billion euros from the previous 20.5 billion. The price fell back down after the US labor market publication. However, there was just a short-term dollar strengthening despite the unexpectedly high index results.

The first support lies at 1.0800 and then at 1.0730. The first resistance stands at 1.0925, the next one is at 1.1050.

There is a non-confirmed and a weak buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement forming a “Golden Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The upward bounce potential target are 1.0925, 1.1050. If the price falls it will get to 1.0800 and 1.0730.