19, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro fell at the end of the week, as it was pressed by regular ECB comments which indicated the possible easing in the near future. The ECB Vice President V. Constancio, speaking in Berlin, said, "If necessary, we are ready to act quickly and do not exclude the further easing possibility" which in couple with the inflation data weakness presented at the final assessment can become a serious psychological factor provoking euro selling.

The first support is 1.3670, the next one is 1.3610. The first resistance is 1.3710, the next one is 1.3760.

There is a confirmed and strong sell signal. The price is under the Cloud and it is under the Chinkou Span.

The downtrend movement will be until the price is under the Kijun-Sen.

The MACD indicator is in negative territory.

Trading recommendations

The deep support level 1.3680 retest and rising trend line were accompanied by a pull back and closing the daily candle above the elevation data.

The bounce from 1.3700 rising trend line will allow buyers to take the price to 1.3800.