15, October 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The US dollar suffered a loss for the first time in three trading sessions after the Fed member’s statement about the possible interest rates rise delay due to the world economic slowdown.

The eurozone expects negative news. The August industrial production is expected to be-1.5% against its growth by 1.0% in July, the ZEW economic sentiment indicator for October in Germany is expected to decline from 6.9 to 0.2 points, the ZEW economic sentiment in eurozone is expected to decline from 14.2 to 7.1.

The euro corrective growth against the US dollar is not supported by the trade volumes.

The price is finding the first support at 1.2600, the next one is at 1.2500. The price is finding the first resistance at 1.2670, the next one is at 1.2730.

There is a non-confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows an upward movement and form a “Dead cross”. The upward movement will be until the price is above the Cloud.

Trading recommendations

As a result of the resistance level of 1.2670 breakthrough upwards, the next target for buyers will be the mark of 1.2730.