12, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

There was a steady euro growth versus the U.S. dollar last week. The single currency traded above 1.3950 strong resistance level, but it failed to consolidate on this mark. During the ECB press conference the price returned back to the level 1.3950 on high volume. Still that was a false passage and the price started to decrease. The pair fell having broken several levels at once. The trading stopped at 1.3760.

The first support is 1.3760, the next one is 1.3710. The first resistance is 1.3800, the next one is 1.3860. There is a confirmed and weak sell signal. The price is under the Cloud and it is under the Chinkou Span.

The downtrend movement will be until the price is under Kijun-Sen.

The MACD histogram is pointing down, indicating the current downtrend movement.

Trading Recommendations

There is the rising trendline 1.3815 and the strong support level 1.3800 -1.3790 on the way of the declining euro. We expect the pair to stop at some of these levels.