22, September 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The US and the Germany government bonds yields have stabilized after the Fed's decision not to change the monetary policy. On the contrary, the world leading stock markets finished the last week trades in the "red zone" which is a positive factor for the euro as a funding currency. Investors' attention is directed to the August US secondary market housing sales publication which was expected 5.52M vs. 5.59M. the data came out at the level of 5.31M. On Monday the pair euro/dollar continued its decrease.

The price continued a correctional movement. The supporl levels of 1.1410, 1.325 and 1.1260 were broken through.

The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1325.

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

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

Trading recommendations

We advise to consider short positions with the first target – 1.1150. After fixing below the first target, the level 1.1050 will become the next one.