22, July 2014

EUR/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)


The initial European currency reduction was caused by the continued caution amid the geopolitics background as well as the increasing concerns about the euro zone financial system health due to the problems in the Portuguese banking group Espirito Santo that is based on some hearings on the bankruptcy brink. The euro fall can be continued, of course, if not something extraordinary happens. However, at the moment, the technical factor is on the euro’s side as the euro/dollar fell to an annual minimum which can be given as a strong support.

The price is finding the first support at 1.3520, the next one is at 1.3480. The price is finding the first resistance at 1.3570, the next one is at 1.3610.

There is a confirmed and strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward one. 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

The pair is close to the strong support 1.3520. We expect the growth.