21, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The lack of relevant information from the Eurozone left the euro completely dependent on external events. The benchmarks for ECB President Draghi on the European Council will be more important. Perhaps, the head of the European Central Bank once again points to the need to take measures to combat the threat of deflation, which leads to the likelihood of monetary policy easing. If such statements are taken, it emphasizes the polarity prospects policies of the ECB and the Fed and adds sales power of the euro.

The first support is at 1.3800. The resistance is at 1.3860.

There is a strong southern movement. The price is below the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen is crossing the Kijun-Sen upward. Both lines are horizontal.

Bollinger Bands indicator is broadening showing high market volatility.
MACD histogram is in the negative area. The indicator is decreasing, giving a sell signal.

Trading recommendations

The main attention is riveted directly to the support level 1.3760 now. If today the sellers aren’t able to break it down, thus forming a false retest, in the longer term a rebound up should be expected, back to the resistance level 1.3860.