22, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The single European currency fell against the dollar. Though the euro/dollar continued a lateral "drift" it fell a bit to the low range boundary. Perhaps the market is waiting for new drivers while the Eurozone was newsflow empty for several sessions. The Germany producer showed a fall in April more than expected, and had a downward effect on the pair.

Six days in a row the euro continues to consolidate near the two strong levels: rising trendline 1.3700 and strong support level 1.3680.

The price is finding the first support at 1.3670, the next one is at 1.3610. The price is finding the first resistance at 1.3710, the next one is at 1.3760.

There is a confirmed and weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The downtrend movement will be until the price is under the Kijun-Sen.

The MACD indicator is in negative territory.

Trading recommendations

All indicators show a downward movement. We predict a bearish scenario The first target is 1.3650. If the pair breaks the first target it will go to 1.3600.