16, October 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The Eurozone economic news was clearly not on the European currency side. In fact all the published indicators caused the sales resumption and the euro ended the session with its decline against the US dollar. The euro corrective growth against the dollar was stopped by the lower bound channel breakthrough of 1.2790. The breakthrough of such a strong resistance was amid the low volumes and the further EUR volatile news.

The price is finding the first support at 1.2730, the next one is at 1.2670. The price is finding the first resistance at 1.2790, the next one is at 1.2850.

There is a confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a positive territory. The price is growing.

Trading recommendations

The current upward movement is considered as a correction so far. The correction can reach 1.2850 where we expect a return to the fall.