15, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The single European currency showed a multidirectional movement against the dollar and finished the day with small losses. The latest statistics pressed the euro, the only thing that supported the pair was the news from the United States that showed a weak sales in the retail trade. The second week in a row a strong support level of 1.3340 does not let sellers to come.

The support is at 1.3360. The resistance is at 1.3420.

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

The MACD indicator is in a negative territory. The histogram is decreasing.

Trading recommendations

We expect a rebound, the potential target is the downtrend channel upper boundary 1.3390. The maximum growth target is a strong resistance level of 1.3430