14, October 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Eurozone faces the deflation threat. The September CPI preliminary data showed the negative value at the level of 0.2%. The quotations showed a growth in the Asian equity markets the day before as well as the high-yield cross-rates growth which is a negative factor for the euro as a funding currency.

The price is finding the first support at 1.1325, the next one is 1.1260. The resistance is at the level of 1.1410. The price started its weak correction.

We have a confirmed and a strong buy signal. The price is above the Cloud now and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen are directed upwards. The pair keeps growing until it is above the Cloud.

The MACD indicator is in a positive territory. The price is growing.

Trading recommendations

The pair is in a flat, still our main target is the level of 1.1410 now.