22, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

After the FOMC meeting minutes publication the American dollar strengthened against the major currency pairs. The single currency has fallen by 65 points down. Then it tried to recover the losses.

The trading volumes remain in the increase  area with small divergence signs. The pair is being traded in the direction of a narrow descending channel, to the upper bound of which at 1.3290 a corrective rates growth is observed.

The price is finding the support at 1.3230. The price is finding the first resistance at 1.3290, the next one is at 1.3360.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead cross”. 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 price is likely to go to the downward trend line 1.3230.