18, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The European currency fell slightly against the dollar on the yesterday's session, but did not make the new low as all the pair movement was previously formed in the side range. There was only a bit of the Eurozone economic data today. The maintain momentum for the single currency could be presented by the speculation that the European Central Bank will not rush with its program.

There were no changes on the pair trade. The price is still trading within the side corridor levels 1.3590 - 1.3520.

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 under the Chinkou Span. The downtrend movement will be until the price is under the Kijun-Sen. The MACD indicator is in negative territory.

Trading recommendations

The potential bounce target is the strong support level 1.3520.

If with the help of fundamental news sellers could break below 1.3520 we will expect the approach the level 1.3480.