13, May 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The situation around the Greek debt still excites the investors’ minds. As it was expected, Athens had to repay the debt to the IMF in the amount of approximately € 770 million. Taking into account the Germany and the Greece bond yields reduction we expect that the Greeks will be able to meet its obligations to international lenders. However, this factor will not support bulls.

Firstly, we expect the interesting reports publication. Secondly, the debt market dynamics is on the bears’ side - the Germany and the US negative bond yields are increasing. Thirdly, the oil market has stabilized; we have not observed the upward movements for the last few days which would put pressure on the US dollar.

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 weak buy signal. The price is on the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal 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

We suppose the pair will go to 1.1150 first. Having overcome the first target the price might go upwards to 1.1050.