12, May 2016

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

In the Bonds markets, the German 10-year government bonds yield reduced which decreased the attractiveness of the European assets. The political component of the day was the speech of Nowotny (the ECB member). According to Nowotny it is desirable to keep the issue of national bonds in alongside with Eurobonds.

The first support lies at 1.1350 and then at 1.1260. The first resistance stands at 1.1450, the next one is at 1.1550.

The price is in the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.

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

Trading recommendations

The potential rebound down targets are the support levels of 1.1350, 1.1260.