17, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro growth, which went versus the dollar in the first half of Thursday, was stopped in the U.S. session after a presentation of the ECB President Draghi M. in Vienna, where it was stated that the European Central Bank is preparing an additional non-standard measures of monetary policy to protect against the deflation risks. This news increased the likelihood of additional softening measures in the euro area policy and rebuilt the market in favor of shelter currencies.

The support is 1.3860, and the resistance is 1.3925.

There is a strong northern movement. The price is above the Cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is above the price. The Tenkan-Sen is crossing the Kijun-Sen upward. Both lines are horizontal.

Bollinger Bands indicator is broadening showing high market volatility.
MACD histogram is in the positive area. The indicator is decreasing, giving a sell signal.

Trading recommendations

The rise up in the euro versus the dollar was stopped by the 1.3925 resistance line. Apparently, today's trading session will take place in the light of strengthening consolidation. We expect 1.3800 testing and a possible test of 1.3765 as well.