14, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The single European currency remained most of yesterday's session under selling pressure against the dollar. The general negative sentiment on the euro was supported by the ZEW report regarding the German business sentiment and the euro area as a whole.

The third support level 1.3340 retest was not successful. Despite the fact that the retest level was against the backdrop of negative EUR fundamental data the sellers were bounced upwards.

The support is at 1.3360. The resistance is at 1.3420.

There is a confirmed and strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen is directed downwards and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The histogram is decreasing.

Trading recommendations

The potential growth targets are the two levels: the upper bound of the downtrend channel 1.3395 and the resistance level of 1.3430.