18, December 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

Today all the traders’ attention will be focused on the FOMC press conference, on the two-day monetary policy meeting results. The Fed will announce its economic forecast and we expect the assessment revision towards the medium term increase.

Buyers could not confidently break through the support level of 1.2500. The key resistance breakthrough was on the increased volume. Nevertheless the pair fell again and tested the level of 1.2400.

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.

There is a confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We believe the growth will be continued now. The first target is the level 1.2670.