20, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro spent yesterday versus the dollar within a narrow range. This turn of events in the market contributed to a change of a sentiment, influenced by non-stable optimism. The political tension reduced in the heart of Europe provided a support for the single currency, but the pressure was observed after the weak data on the Eurozone economy.

The support is 1.3800. The resistance is 1.3860.

There is a strong southern movement. The price is below the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen is crossing the Kijun-Sen upward. Both lines are horizontal.

Bollinger Bands indicator is broadening showing high market volatility.
MACD histogram is in the negative area. The indicator is decreasing, giving a sell signal.

Trading recommendations

The pair fell the other day. We believe the decrease will be continued but only after a bounce up to 1.3860.
The first target is 1.3760.