16, November 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro resumed its decline after a growth at the end of the trading week. The decline was provoked by the less aggressive than expected Fed statements tone towards the interest rates increase timing. In particular, Evans said that he would like to see the inflation growth before the interest rates being changed, the New York Federal Reserve Bank President Robert Dudley noted the inflation expectations signs decline, saying that the rate hike conditions soon be achieved.

After a consolidation above the support level of 1.0730 the pair tested the resistance level of 1.0800. However the pair decreased to the support level of 1.0730.

The price is finding the first support at 1.0730, the next one is 1.0630. The price is finding the first resistance at 1.0800, the next one is at 1.0925.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows 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 negative territory. The price is consolidating.

Trading recommendations

After the support level of 1.0730 breakthrough down the way to the support 1.0630 will be opened.