21, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro/dollar has been consolidating at the low having reached earlier and ended the session at opening prices. The weak economic data from the Eurozone did not provoke negative effect as they were expected and only confirmed the annual inflation as announced previously at 0.5% y/y. The May construction volume release showed figures worse than expected -1.5% m/m vs. -1.0% expected m/m as the result we had unsuccessful attempts to continue the decrease. The geopolitical events also had no effect on the tool movement.

The price is finding the first support at 1.3520, the next one is at 1.3480. The price is finding the first resistance at 1.3570, the next one is at 1.3610.

There is a confirmed and strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Clound.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

The several false retests are more likely to be followed by a rebound upwards. The correctional growth targets are the marks: 1.3570, 1.3610