19, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Traders did not have a single attitude towards the euro, the single European currency was sold against the dollar amid the bleak background information on the Eurozone economy and the U.S. positive processes reports. The reason for the disorder was a German ZEW institute report on business sentiment in Germany and the Eurozone as a whole.

The Eurozone newsflow has no plans to publish something important, the euro will be under the external information influence primarily from the U.S., where towards the end of the day there will be the U.S. Central Bank's monetary policy solutions. Given that the Fed is inclined to tighten now, and the ECB on the contrary increases easing policy, there is reason to expect the euro lowering continuation, unless, of course, at the end of the meeting it will be announced the reduction incentive programs temporary suspension.

The price is finding the first support at 1.3570, the next one is at 1.3520. The price is finding the first resistance at 1.3610, the next one is at 1.3670. There is a confirmed and weak sell signal. The price is in the Cloud and under the Chinkou Span. The downtrend movement will be until the price is in the Cloud. The MACD indicator is in a positive territory. The histogram is growing.

Trading recommendations

On the background of a strong market "foundation" we can expect the support/resistance strong levels false retest.

The EUR/USD tool is likely to test the support level 1.3480 with following bounce up to 1.3610.