12, February 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Despite the Janet Yellen's soft comments, she made it clear that the rate hike is still on the agenda, but, as before, it will depend on incoming economic data and the situation in the financial markets. A certain portion of the negative comments for the euro came from Prata, the ECB representative. According to him the regulator may use some instrument to solve problems with liquidity.

The first support lies at 1.1260 and then at 1.1150. The first resistance stands at 1.1350, the next one is at 1.1440

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The potential decrease targets are two levels of support: 1.1260 and 1.1150. We don’t exclude that the pair can grow to the resistance level of 1.1350. After breaking 1.1350 the buyers may go to 1.1440.