19, September 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The pair is under pressure from the investors’ positive attitude towards the American currency and the European Central Bank easy policy.

There was a rebound from the downtrend line 1.2930 against the high volume based on the EUR/USD rates. The trend rebound was followed to the support level 1.2850. Then the pair returned to the level of 1.2930.

The price is finding the first support at 1.2850, the next one is at 1.2790. The price is finding the first resistance at 1.2930, the next one is at 1.3000.

There is a non-confirmed and a weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen 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 price is correcting.

Trading recommendations

We believe the growth will be continued. The first target is the level 1.3000. We do not exclude the fall to 1.2850.