20, October 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro/dollar spent the Friday session in a limited range and closed the session almost with the opening prices. The eurozone data gave the market some disappointment because the latest September inflationary evaluation confirmed the earlier price pressure growth results only 0.3% y/y that keeps the deflationary risks, and the foreign trade block information pointed to the August export and import drop.

The price is finding the first support at 1.2730, the next one is at 1.2670. The price is finding the first resistance at 1.2790, the next one is at 1.2850.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is decreasing.

Trading recommendations

The downward bounce potential target is 1.2670. We believe the pair to return to a decrease soon.