22, January 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The ECB meeting anticipation was one of the limiting factor for the pair's growth. The market did not expect from the regulator further easing policy steps, but hoped that Draghi would outline the current economic situation in the region and would give hints on the future plans of the regulator. The euro fell after the meeting when Draghi promised to reconsider the current economy policy.

The first support lies at 1.0800 and then at 1.0730. The first resistance stands at 1.0925, the next one is at 1.1050.

The price is in the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement and form a “Dead Cross”.

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

Trading recommendations

After the level of 1.0800 breakthrough down the way to the support 1.0730 will be opened.