23, February 2015

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The Eurozone news turned out to quite dull and the euro recovered its decline but in increased at the end of the trades. The France consumer price index showed -1.0% in January against the expected -0.9%. The euro zone payments balance was 17.8 billion euros in December against 19.9 billion in November while it was forecasted 23.3 billion euros.

Germany refused Greece to renew the loan agreement for six months on those considerations that Greece refuses to comply with the austerity measures. Nevertheless the Greece and the Eurogroupe came to an agreement.

The level of 1.1400 breakthrough was not followed by the strong euro growth against the US dollar. On the contrary, the trade has become a protracted consolidation within the levels of 1.1400 - 1.1300.

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.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement.

The MACD indicator is in a neutral territory. The price is growing.

Trading recommendations

The approach to the level of 1.1300 may lead to a price rebound upwards. The potential rebound targets are the resistance levels of 1.1400, 1.1520.