21, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

News from the European continent did not have a lot of economic statistics. We can note only the Eurozone construction release on March, which indicated the reduction by 0.6 % m / m and 5.2% growth compared with the last year same period. The political bloc had more news, which will provide ECB leaders’ - Weidmann and Mersch - speeches.

The trading on the euro continued through sideways consolidation for five days. But it is worth noting the fact that the major support levels 1.3700 and 1.3680 are not broke down.

The first support is 1.3670, the next one is 1.3610. The first resistance is 1.3710, the next one is 1.3760.

There is a confirmed and strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The downtrend movement will be until the price is under the Kijun-Sen.

The MACD indicator is in negative territory.

Trading recommendations

The consolidation development is clearly on hand to buyers because namely from the 1.3700 and 1.3680 levels may happen the price bounce up to a further medium rising trend development.
A potential target for a possible bounce up will be the 1.3800 resistance level.