16, February 2015

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

Germany recorded the GDP growth for the fourth quarter. The manufacturing and the service sector showed a slowdown in the last 2014 quarter. The euro devaluation has had a positive effect on the net exports, reducing unemployment to 0.1%. The Brent oil increased by more than 5% that would be able to support moderate demand for the single European currency.

There was the attempt to break through the resistance level of 1.1400, but the pair failed to fixate above it.

The price is finding the first support at 1.1300, the next one is at 1.1170. The price is finding the first resistance at 1.1400, the next one is at 1.1520.

The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”.

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

Trading recommendations

We expect the 1.1520 line break that will open the way for the buyers to 1.1590.