14, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Obviously, the main reason for the euro fall could become the European Central Bank representative’ statements that the ECB was seriously considering lowering the overnight interest rate on bank deposits which is now at 0.% , thereby converting it into negative territory.

In the short term, probably the pair drops to the support in the area 1.3440-1.3475. In the case of a break below this area the road to the support level 1.3295 or 1.3100 will be opened.

There is a strong northern movement. The buy signal is confirmed and strong. The price is above the cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is below the price. The Kijun-Sen and Tenkan-Sen are directed upwards.

Bollinger Bands is broadening being directed upward.
MACD is in a positive area, the histogram is growing.

Trading recommendations

The price return to 1.3625 trend line is not supported by trading volumes. At the current time, this growth is corrective. It is likely that the pair will trade near trend line, and then it is expected to retest the trend line with followed a rebound in the price support level 1.3570.