14, October 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The euro was in a side direction trades at the first trading day and increased at the end of the trading day against the dollar. The ECB functionaries’ statements led to the euro lower interest the last week that confirm once again the Fed's and the European regulator’s policies polarity. M. Draghi said that the euro zone economic risks were tilted to the downside at the conference in Washington and if inflation was still low, the bank's control board would implement additional unconventional policy measures.

The price is finding the first support at 1.2600, the next one is at 1.2500. The price is finding the first resistance at 1.2670, the next one is at 1.2730.

There is a non-confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows an upward movement and form a “Dead cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a neutral territory. The price is consolidating.

Trading recommendations

We expect the euro growth. The potential growth target is the last week's high – the resistance level of 1.2790.