22, February 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Neither the risk sentiment nor the ECB’s meeting minutes did not contribute to the EUR/USD recovery. The regulator in his statement pointed to the downside economic risks increase in comparison with the December’s assessment and again expressed its willingness to use all available instruments if the situation requires. In general, the regulator did not tell anything new. However, the ECB’s signals regarding the further situation worsening in the region could not leave indifferent the euro that started to grow.

The first support lies at 1.1050 and then at 1.0925. The first resistance stands at 1.1150, the next one is at 1.1260

There is a confirmed and a weak sell signal. The price is under the Ichimoku Cloud and it is under 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 Cloud.

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

Trading recommendations

We believe the growth will be continued now. The first target is the level 1.1150, the next one is 1.1260.