14, April 2015

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

Investors' attention will be focused on the debt market dynamics. The German 10-year bond yields are still at the historic lows and against this background, the euro becomes the funding currency for the carry trade operations.

Having broken through the strong support level of 1.0670, the price has been consolidating below the level for a long time that plays the role of a resistance. The trade volumes are in reduced area. The resistance level of 1.0550 was tested.

The price is finding the first support at 1.0550, the next one is at 1.0420. The price is finding the first resistance at 1.0670, the next one is at 1.0790.

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 shows a downward movement and the Kijun-sen shows a horizontal movement. 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

We believe the growth will be started now. The first target is the level 1.0670.