22, April 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General Overview

The European Union financial markets were closed in Easter in Germany, Italy, France and Britain on Monday. There was a weak volatility. The euro decline was caused by the following fundamental factors: low volatility in the market, the European Central Bank leadership discontent, the euro versus the dollar high rate, low inflation in the Eurozone.

At this point, the auction continues between two strong levels: 1.3900 - 1.3800. The price is located almost in the middle levels, while initially it was strayed from the 1.3900 resistance, above which it failed to consolidate after a short break.

The first support is 1.3800, the next is 1.3760. The first resistance is 1.3860, the next is one 1.3900.

There is a confirmed and weak sell signal. The price is in the Cloud and it is below the Chinkou Span. The undetermined movement will be until the price is in the Cloud. The Tenkan-Sen is crossing the Kijun-Sen down. The cloud is neutral.

The MACD shows a decrease.

Trading recommendations

The downtrend channel formation points towards the downward trend continuation. The 1.3800 break in the short term is paving the way towards the support level 1.3760.