21, August 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The German 10-year government bond yields are declining relative to its US and the UK counterparts that indicate the European assets low investment appeal. The United States published the jobless claims report, which was expected with a slight reduction - up to 272 thousand from 274 thousand. The data showed an increase up to 277 thousand.

The support level of 1.1050 rebound sent the downward correction upwards. The immediate growth target was the resistance level of 1.1150 that was broken upwards.

The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1420.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The pair can grow to the resistance level of 1.1260. After breaking 1.1260 the buyers may go to 1.1420.