19, January 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The pair fell after it was trading upwards, receiving support amid the increased interest to the safe assets. The positive trade balance report has also supported the EUR/USD – the surplus widened to 22.7 billion euro from 19.9 billion against the expected 21.1 billion. However, the main growth driver was the block of the US statistics that discouraged the dollar.

The first support lies at 1.0800 and then at 1.0730. The first resistance stands at 1.0925, the next one is at 1.1050.

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The pair can grow to the resistance level of 1.0925. After breaking 1.0925 the buyers may go to 1.1050.