16, September 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro fell after the published data showed that the industrial production and the retail sales growth in China was slowed in August, adding fears over the world's largest economy slowdown.

The support level of 1.2930 temporarily stopped the downward trend. Four days price consolidation above was a signal for the corrective movement upwards.

The price is finding the first support at 1.2930, the next one is at 1.2850. The price is finding the first resistance at 1.3000, the next one is at 1.3070.

There is a confirmed and a weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a «Golden Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The pair can grow to the resistance level of 1.3000. After breaking 1.3000 the buyers may go to 1.3070.