15, April 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The traders’ attention was drawn to the euro area industrial February production positive data. Last week the Old World leading economies reported about the manufacturing sector growth. In addition, the single European currency devaluation has significantly strengthened the European exporters’ position.

The euro is correcting against the US dollar. The decline was not at the highest volume that allowed the support level of 1.0550 to withstand sellers in the short terms. Te pair tested the resistance level of 1.0670.

The price is finding the first support at 1.0550, the next one is at 1.0420. The price is finding the first resistance at 1.0670, the next one is at 1.0790.

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

The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

The pair can grow to the resistance level of 1.0790. After breaking 1.0790 the buyers may go to 1.0925.