13, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro fell against the dollar. The European economic calendar showed nothing important yesterday, and probably, the market began to expect weak data on economic growth and the euro area inflation which is scheduled for a release later this week. The forecasts are reduced to waiting for the sluggish GDP growth in the European block, as well as a similar situation in the EU leading countries.

Last week, we saw two support level of 1.3345 retests. Twice the seller's level of support kicked them up. How strong the level is we will know after the fundamental data publication We recommend considering the breakthrough level of 1.3345 after getting the real facts.

The support is at 1.3360. The resistance is at 1.3420.

There is a confirmed and strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen is directed downwards and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

We expect the price bounce up in the short term. The potential bounce target is performed by two marks: the 1.3420/1.3430 resistance level downtrend channel upper bound