15, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro showed steady gains versus the dollar almost all week. This triumphal march was interrupted only on Friday when the euro showed a neutral result. The authoritative statements from the ECB by Weidmann, Nowotny, Kerry, that deflation signs are not observed in the euro zone and the risk of its occurrence is limited created a good foundation to support the euro. Additional support was and from the Fed “minutes” soaked in “pigeon” colors.

The euro opened the week with an avalanche break versus all its major opponents and could continue to go down the path in the current session.

The support is 1.3800. The resistance is 1.3860.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span now. The upward movement will be until the price is above the Cloud. The Tenkan-Sen is crossing the Tenkan-Sen upwards forming a golden cross. The cloud is uprising.

The MACD shows a decrease.

Trading recommendations

The pair is correcting. If the price keeps going down it will test 1.3760 soon.
The bounce up is possible. The main target of the rebound is the resistance level 1.3900.