16, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The Eurozone economy data publication did not contain considerable information and didn’t provide influence on the euro/dollar position. The final data on Germany and France consumer price inflation in April noted the changes absence from the previous estimate and didn’t disturb the market tranquility. The Eurostat agency industrial production report in the euro zone in March was not perceived negatively, which pointed to the output decrease by 0.1% m/m and 0.3% y/y, indicating the EU regenerative processes instability.

The first support is 1.3670, the next one is 1.3610. The first resistance is 1.3710, the next one is 1.3760.

There is a confirmed and strong sell signal. The price is under the Cloud and it is under the Chinkou Span.

The downtrend movement will be until the price is under the Kijun-Sen.

The MACD indicator is in negative territory.

Trading recommendations

The "bears" can test the levels 1.3672 and 1.3643 in the short term. The 38th figure direction bounces should be used to open short positions.