21, April 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The German 10-year bond yields are approaching the zero line which is a negative factor for the single European currency. Investors traditionally avoid the instruments with low profitability.

The US and German bond yields reached the level of 181 bp on Friday, April 17 which is the highest level since March 16. This factor indicates the euro over valuation.

The whole last week the euro corrected against the US dollar on the increased volume and towards the upward channel. Nevertheless, the pair decreased on the Monday’s trades.

The price is finding the first support at 1.0670, the next one is 1.0550. The price is finding the first resistance at 1.0790, the next one is at 1.0925.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement and form a “Golden Cross”.

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

Trading recommendations

The potential growth targets are the resistance levels: 1.0925.