21, October 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The part of the previous achievements was lost that was caused by the frustration tendency to the peripheral countries bond yield growth, the euro sales were caused by the ECB members’ statements and the US economic data that pointed out that the regenerative processes in the world's largest economy are still ongoing.

We have noticed a consolidation above the support level of 1.2730 for a long time. While trading volumes are still at the lows.

The price is finding the first support at 1.2790, the next one is at 1.2730. The price is finding the resistance at 1.2850.

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 and the Kijun-sen show 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 increasing.

Trading recommendations

The approach to the level of 1.2790 may lead to the price rebound upward. The potential rebound target is the resistance level of 1.2850.