19, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Euro fell against the dollar a bit the last trading day. Probably the traders’ sentiment that was formed after the euro area disappointing GDP data for has already been taken into consideration and short-term investors have used data from the United States to take profit. In addition, technical factors presented by a strong support could stimulate the closing of euro short positions.

Eight day consolidation on the historical support level 1.3360 which was formed 2013.11.07, was followed by the price rebound upwards.

The support is at 1.3360. The resistance is at 1.3420.

There is a confirmed and weak sell signal. The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen is directed downwards and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The histogram is growing.

Trading recommendations

The resistance level of 1.3485 retest is more likely to lead to a short-term consolidation.