13, November 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The ECB stimulating measures and the Fed rate hike possible increase, probably, will continue to set the tone in the foreign exchange market until the December Central Bank meetings. The German and the US two-year bond yields have already broken through the levels which were set in March.

After the last week sharp decline the price has moved into the long consolidation near the support level of 1.0730. Now the price is trading above that level. The volume divergence signals towards the buyers power easing.

The price is finding the first support at 1.0730, the next one is 1.0630. The price is finding the first resistance at 1.0800, the next one is at 1.0925.

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

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

Trading recommendations

The potential decrease targets are two levels of support: 1.0730 and 1.0630.