13, November 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro has consolidated against the dollar. There were no events that could support the euro and its interest could be based on the technical factors and the US Central Bank speeches. Moreover, the EU authoritative analysts’ statements could be a reason for the increasing pressure on the European currency.

The trend is expected to go downwards according to this instrument in the medium-term. The correctional growth price continuation is expected in the short term.

The price is finding the first support at 1.2400, the next one is at 1.2300. The price is finding the first resistance at 1.2500, the next one is at 1.2600.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is below the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downtrend movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The pair is close to the strong resistance level of 1.2500. If the pair breaks it we expect the growth to 1.2600.