14, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

At the yesterday's session the single European currency has demonstrated a steady decrease and strengthened versus all its major opponents. The market is clearly not paying attention to the continuing problems with economic growth in the euro area and relies solely on political newsflow.

The support level is 1.3860. The resistance level is 1.3925.

There is a strong northern movement. The price is above the Cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is above the price. The Tenkan-Sen is crossing the Kijun-Sen upward. Both lines are horizontal.

Bollinger Bands indicator is broadening showing high market volatility.
MACD histogram is in the positive area. The indicator is decreasing, giving a signal to sell.

Trading recommendations

There was the intermediate resistance level 1.3925 break which was followed by fixing prices above 38 figure. The major support levels lie at the bottom, except for an oblique line resistance 1.3960, which in the short term can correct the price downwards.

If the corrective pullback from 1.3860 happens, the main goal will be the mark 1.3800. The further downward trend is expected to continue with the target - 1.3760.