18, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro was under the dollar pressure the last session and closed the day with relatively strong losses. Apparently, the market has completed the J. Yellen speech analysis before U.S. lawmakers and finally imbued with the idea that the Fed is close to tighten the policy, while the ECB is heading for further easing.

The strong support level of 1.3570 breakthrough led to working out the next target - the past month minimum level of 1.3520. The level was reached with lower volumes that directly speaks for downward trend relief.

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 Clound.

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

Trading recommendations

The pair can grow to the resistance level of 1.3570. After breaking 1.3570 the buyers may go to 1.3610.