20, August 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The main event of the day was the US inflation publication. We expected the index increase to the level of the forecasted medians compared to the previous months. The data came out at the level of 0,1% that is less then the forecasted 0,2%. The US Treasury two years bond yields are moderately growing, so it was expected their high growth after the inflation release as traders begin to "lay in quotes" the US Federal Reserve first rate hike on September 17 this year.

The euro is correcting against the US dollar on the lower volumes from the resistance level of 1.1150. the pair is consolidating at the support level of 1.1050.

The price is finding the first support at 1.0925, the next one is 1.0790. The price is finding the first resistance at 1.1050, the next one is at 1.1150.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

The bears need to break below 1.0925 for a steady downward movement. The way to the marks 1.0790, 1.0670 will be opened after this breakthrough.