16, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Overview The Euro attempted to rise against the dollar on yesterday's trading supported by the stock market optimism and rumors that the BoC continues to correct its foreign exchange reserves, increasing the euro share. However, the EU data showing a weak economy cooled the "bulls". The intermediate resistance level breakthrough of 1.3610 led to the downward trend line retest of 1.3625. The first trend line retest was followed by a reduced volumes background and led to the consolidation.

The price is finding the first support at 1.3570, the next one is at 1.3520.

The price is finding the first resistance at 1.3610, the next one is at 1.3670. There is a non-confirmed and strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Clound.

The MACD indicator is in a negative territory.

Trading recommendations

The bears could break below 1.3610. We expect the level of 1.3570 testing and further falling towards 1.3520.