18, May 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

All traders’ attention was focused on the USA reports amid an empty macroeconomic calendar in Europe. The United States industrial production was the focus of our attention (0,7% m/m vs. expectations -0,3% m/m).The index is considered as a leading indicator of the FOMC monetary policy changes.

The first support lies at 1.1260 and then at 1.1150. The first resistance stands at 1.1350, the next one is at 1.1450.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

After the support level of 1.1260 breakthrough down the way to the support 1.1150 will be opened.