21, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The single European currency was sold last week. It is obviously that the interest in the European currency was based on the desire to correct their market positions before a long weekend. We do not exclude that the euro support came from the prevailing opinion on the background of Yellen's rhetoric stressing the concern about the state of the economy and labor market and also to confirm the Fed plans to keep rates low for a long time.

The first support is 1.3800, the next is 1.3760. The first resistance is 1.3860, the next is 1.3900.

There is a confirmed and weak sell signal. The price is in the Cloud and it is below the Chinkou Span. The undetermined movement will be until the price is in the Cloud. The Tenkan-Sen is crossing the Kijun-Sen down. The cloud is neutral.

The MACD shows a decrease.

Trading recommendations

1.3800 is a key mark between the buyers and the sellers.

The rebound from 1.3800 would lead to a euro growth versus the dollar with the targets: 1.3860, 1.3900.
Shall the pair decrease further it may reach 1.3760 soon.