20, October 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro positions look vulnerable amid the ECB upcoming meeting. The Governing Council member Benoit Ker said that the regulator was not going to solve any other issue besides the mentioned earlier. Meanwhile expectations regarding the quantitative easing program correction are increasing. The last Bloomberg survey showed that the number of respondents who expect the stimulating measures package to be to expanded, increased from 68% to 81%.

The pair is showing a downward correction. The decrease was stopped at the level of 1.1325.

The first support is at the level of 1.1325, the second one is at the level of 1.1260. The resistance is at the level of 1.1410, the next one is at the level of 1.1530.

We have a weak buy signal. The price is in the Cloud now and it is under the Chinkou Span. The Tenkan-sen is crossing Kijun-sen downwards; the Kijun-sen shows a horizontal movement. We have a “Dead Cross” signal.

The MACD indicator is in a negative territory. The histogram is decreasing.

Trading recommendations

The correction is in progress. If the pair keeps falling we expect the level of 1.1260 to be reach soon. We believe the pair is under pressure till the ECB meeting.