21, April 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

In Germany, the Producer Price index was in a flat from February to March. Still the index fell by 3.1% y/y (the strongest drop since January 2010). Economists expected a growth of 0.1% m/m, and a decline of 2.9% y/y. According to the latest reports, the upward pressure on consumer prices from the manufacturers is limited. The consumer climate in 28 EU countries decreased by 3.2 points from 12,2 points in December 2015 to 9 points in March 2016.

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 non-confirmed and a weak sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement forming a “Golden Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

If the price fixates below the support 1.1260, it may continue the downward trend in the short term. The potential target is 1.1150.