16, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Manual ECB resumed the verbal intervention to weaken the euro. Both, M. Draghi by himself on Saturday, and a member of the Governing Council K. Noyer on Monday have directly stated that the euro weakening is desirable and this requires the monetary policy loose. This rhetoric has fallen off the euro versus the dollar and other majors.

The pair looks uncertain. But since the main support level 1.3840 is broken up, the corrective pullback may last for the target 1.3800, 1.3760.

The first support is 1.3800, the next is 1.3760. The first resistance is 1.3860, the next is 1.3900.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span now. The upward movement will be until the price is above the Cloud. The Tenkan-Sen is crossing the Kijun-Sen down. The cloud is uprising.

The MACD shows a decrease.

Trading recommendations

The pair is correcting. If the price keeps going down it will test 1.3760 soon.
The bounce up is possible. The main target of the rebound is the resistance level 1.3900.