21, March 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The ECB President Mario Draghi performed at the end of the week. In particular, he noted that the monetary policy itself could not respond to the structural weaknesses in Europe; the interest rates would remain at the same level or would be lowered for a longer time. Germany published Producer Price Index for February. The index came in at -0.5% m/m and at -2.7% y/y.

The first support lies at 1.1260 and then at 1.1150. The first resistance stands at 1.1350, the next one is at 1.1450.

There is a confirmed and a strong buy signal. The price is above the Ichimoku 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 above the Cloud.

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

Trading recommendations

We suppose the pair will go to 1.1350 first. Having overcome the first target the price might go upwards to 1.1450.