14, November 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro was trading in the narrow side corridor and finally fixed the negative result against the dollar. There were some eurozone economic data that have shown the positive result, but it was not enough to give the euro solid support.

The consolidation continuation was a good signal for the prices rebound downwards. Moreover, buyers were not able to lift the price above the level of 1.2500 and this level testing was unsuccessful.

The price is finding the first support at 1.2400, the next one is at 1.2300. The price is finding the first resistance at 1.2500, the next one is at 1.2600.

The price is in the Cloud and it is below the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement and form a “Golden Cross”.

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

Trading recommendations

The potential rebound target are the support levels of 1.2400 and 1.2300. The potential decrease target is the support level of 1.2200.