17, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro/dollar remained under the pressure. The euro disorder was provoked by the ZEW disappointing data. The Euro sales were carried out amid the Fed reports. The brief euro buying against the dollar was observed when the retail sales release went significantly worse forecasted medians. In fact, the ZEW Report pointed to the Germany investor confidence drop in July for seventh consecutive month.

The price is finding the first support at 1.3520, the next one is at 1.3480.

The price is finding the first resistance at 1.3570, the next one is at 1.3610. There is a 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 Cloud.

The MACD indicator is in a neutral territory.

Trading recommendations

After the trend line 1.3520 breakthrough the way to the support 1.3480 will be opened. Meanwhile we expect a consolidation and a short term bounce upwards.