17, November 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro sharply rose at the end of the last week. Earlier the weak news and new guidelines expectations provoked the lateral consolidation. The trade in the narrow corridor for this time ended in the euro favor and the US economic data that showed the slight employment weakening provided support for the euro.

The euro has consolidated below the resistance level of 1.2500 for a long time. Then the price rebound upwards. The price rebound from this level allowed the euro to break through the level of 1.2500.

The price is finding the first support at 1.2500, the next one is at 1.2400. The price is finding the first resistance at 1.2600, the next one is at 1.2670.

The price is in the Cloud and it is below the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.

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

Trading recommendations

If the price fixates below the support 1.2500, it may continue the downward trend in the short term. The potential targets are 1.2400 and 1.2300.