13, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The pressure on the euro was also observed from the U.S. dollar in yesterday's trading. Obviously, the investor start understanding that the step to mitigation is a clear signal of the monetary policy different stance in Europe and the United States. However, the euro selling was not so ambitious in accordance with the previous two sessions, the fault of which, as a rule, was presented by technical factors that led to the euro stability, and plus to all market participants' desire to wait the new benchmarks.

The downward trend is not supported by trade volumes moved in the lateral consolidation direction given the small price rounding up.

There is a confirmed and strong sell signal. The price is below the Cloud and it is under the Chinkou Span. The downtrend movement will be until the price is below the Kijun-Sen. The Kijun-Sen is directed horizontally. The Cloud is descending.

The price is finding the first support at 1.3520, the next one is at 1.3480. The price is finding the first resistance at 1.3570, the next one is at 1.3610.

The MACD indicator is in a negative territory. The histogram is growing.

Trading recommendations

If the price comes to the level 1.3570 at the weak volumes we expect the price bounce down. The potential target for the bounce is the support level 1.3500.