18, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro/dollar behavior was unexpected enough last week. The Eurozone newsflow did not have anything interesting and has not made any impression on the market, at the same time the weak United States employment release caused a sharp euro growth.

The instrument was trading without any changes. Despite the fact that the main trend is bearish, sellers can not break below 1.3340 strong support level for a long time.

The support is at 1.3360. The resistance is at 1.3420.

There is a confirmed and weak sell signal. The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen is directed downwards 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 histogram is growing.

Trading recommendations

It is possible that sellers will try again today to test the mark of 1.3340 strength. And if they break it, we expect a confident continuation of the bearish trend. The decrease potential is the mark 1.3280. Still we should not exclude and growth possibility. The pair looks like going to correct to 1.3450.