15, May 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The US and the euro zone GDP differential has increased by 0.2% in the first quarter which will support the euro in the short term.

The US retail sales moderately negative data indicate that now we should not wait for the private consumption strong increase which will contribute to the strong economic growth in the second quarter.

Due to the level of 1.1260 breakthrough buyers opened the way to the maximum that is the resistance level of 1.1450.

The price is finding the first support at 1.1260, the next one is 1.1150. The price is finding the first resistance at 1.1450, the next one is at 1.1675.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen the Kijun-sen show a horizontal movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We suppose the pair will go to 1.1150 first. Having overcome the first target the price might go downwards to 1.1050.