23, January 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The ECB announced its decision about the stimulating measures. They launched the QE program. The European Central Bank shall begin to buy the secondary market assets worth up to 60 billion euros a month in March 2015, and it will continue to improve the stability of inflation or to the end of September 2016.

The sixth week in a row the euro is declining against the US dollar towards the downward channel. Buyers tried to break through the channel upper bound of 1.1590 – but this attempt was unsuccessful. The pair fell and broke the support levels of 1.1520 and 1.1400.

The price is finding the first support at 1.1300, the next one is at 1.1170. The price is finding the first resistance at 1.1400, the next one is at 1.1520.

There is a 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

The potential decrease targets are two levels of support: 1.1300, 1.1170.