18, November 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The euro continues its downward movement after a slight correction. Earlier the euro demand has grown that allowed the European currency to finish trades with a profit against the dollar. This point is attributed to the US inflation perspectives that reduce our confidence in the US rate increase any time soon. However, the technical factors were a more serious as that triggering increased tendency to lock in profits on the long dollar positions.

Buyers corrected the euro/dollar amid the low volumes to the downward trend line of 1.2500. The downward trend line of 1.2500 is a key resistance for the bearish trend. The price could not fix above this level.

The price is finding the first support at 1.2400, the next one is at 1.2300. The price is finding the first resistance at 1.2500, the next one is at 1.2600.

The price is in the Cloud and it is below the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.

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

Trading recommendations

The price is likely to go to the downward trend lines 1.2400, 1.2300.