13, April 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Even though the inflation in Germany for March accelerated its growth, the Producer Price index was below the ECB target level. The consumer prices in Germany rose by 0.8%, the index rose by 0.1% over the year. Low rates of inflation in the Euro area forced the ECB to take additional measures to bring the inflation rate up to 2%.

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 on the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement forming a “Golden Cross”.

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

Trading recommendations

The buyers need to break above 1.1450 for a steady growth. The way to the mark 1.1550 will be opened after this breakthrough.