21, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The single European currency fell against the dollar at yesterday's trading. The pair broke the strong support level that restrained the price from a falling more than a week, and sat a new local minimum. The reason for the break down was the strong economic data from the United States, reported the housing sector improvement. It is worth noting that the initial pressure on the euro gave the data on its own economy.

The price is finding the first support at 1.3290, the next one is at 1.3230. The price is finding the first resistance at 1.3360, the next one is at 1.3420.

There is a confirmed and a 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 horizontal movement and form a “Dead cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The potential downward movement target is the support level of 1.3230.