19, April 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Even though the market does not expect any sensation from the ECB meeting on April 21st, it could have a great impact on the EUR/USD. According to Mario Draghi the weakness of emerging markets, uncertain prospects of oil and geopolitical risks hamper European HICP and push the ECB to take action.

The first support lies at 1.1260 and then at 1.1150. The first resistance stands at 1.1350, the next one is at 1.1450.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

If the price fixates below the support 1.1260, it may continue the downward trend in the short term. The potential target is 1.1150.