16, May 2016

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

German GDP grew by 0,7% from January to March after increasing by 0,3% in the last three months of 2015. The indicator was above the average forecast. Analysts expected a growth of 0,6%. In annual terms, the economy grew by 1,3%.

The first support lies at 1.1260 and then at 1.1150. The first resistance stands at 1.1350, the next one is at 1.1450.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a horizontal movement forming “Dead Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

After the support level of 1.1260 breakthrough down the way to the support 1.1150 will be opened.