20, November 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro continued to strengthen its position. The better ZEW report for November in comparison with the forecasts supported the euro. The Germany and the EU data unexpectedly exceeded forecasts, showing the economic sentiment growth up to 11.5 pp and 11.0 pp respectively.

The trading volumes continue to decline downwards both with the corrective growth and with the trade price within the trend. The bearish trend potential is still in force.

The price is finding the first support at 1.2500, the next one is at 1.2400. The price is finding the first resistance at 1.2600, the next one is at 1.2670.

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 shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is under the Cloud.

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

Trading recommendations

The price is likely to go to the support levels of 1.2400, 1.2300.