12, May 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

In general, the USA unemployment data are good – the employment growth points out to the economy recovery after the first quarter recession.

However, the inflationary component has disappointed the market. The average hourly earnings came below the traders’ expectations while the March figure was revised in the negative side. The two-year Treasury bond yields reacted to the release with a decrease by 10.8 basis points that indicate the low inflation expectations.

Having broken through the intermediate support level of 1.1260, sellers continued the downward trend amid the increased trading volume.

The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1450.

There is a confirmed and a weakbuy signal. The price is on the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a neutral territory. The price is consolidating.

Trading recommendations

After the trend line 1.1150 breakthrough down the way to the support 1.1050 will be opened.