14, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro was traded against the dollar almost at the same level half of yesterday. The drop happened after Germany decided to support Quantitative easing next month. Besides this we did not get anything interesting. The business environment in France rose some interest - an indicator showed a decline in April to 98 from 99 with expectations to see a rise to 100.

Information is somewhat controversial, but it is more likely pessimistic as everyone considers the Germany data important and not positive news increase pessimism sentiment in the market.

The first support is 1.3710, the next one is 1.3670. The first resistance is 1.3760, the next one is 1.3800.

There is a confirmed and strong sell signal. The price is under the Cloud and it is under the Chinkou Span.

The downtrend movement will be until the price is under the Kijun-Sen.

The MACD is pointing down, indicating the current downtrend movement.

Trading Recommendations

The breakdown and consolidation below down 1.3670 will be a good signal to continue the downward trend. The potential target are the levels 1.3670 and 1.3630.