17, December 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

We wait for the Germany and France production sector PMI from Markit Economics as well as from the ZEW institute. It should be noted that these indicators are quite difficult to predict as they relate to the number of leading ones.

The pair has been near the downward channel upper bound for a long while. We see consolidation fallowed by the price increase.

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.

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

The MACD indicator is in a positive territory. The price is consolidating.

Trading recommendations

The downward bounce potential target are 1.2400, 1.2300, 1.2200.