20, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The European currency rose slightly against the dollar. There was no news from the Eurozone still the information expectations from the Fed kept the single currency in a narrow range during the Asian and European sessions. The impulse to small-volume euro buying was given by the American Central Bank messages, which does not set the market on the dollar credibility. The news statements of the possible monetary policy easing extension for the Eurozone for the low inflation battle can reduce the interest to the single currency which continued to strengthen against the dollar.

The downward trend was stopped at the support level 1.3520. The continuous price consolidation at 1.3520 became a good signal for a trend change and a short-term growth to the strong resistance level 1.3610 region.

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 non-confirmed and weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen.

The MACD indicator is in positive territory.

Trading recommendations

The U.S. dollar general correlation is aimed at lowering that gives additional reasons for the rising trend continuation.

The buyers need to break above 1.3610 for a steady growth. The way to the mark 1.3670 will be opened after this breakthrough.