23, March 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

After the US publications the dollar slightly weakened. Later, euro weakened after the weak Consumer Confidence index publication in the Euro area for March – the index fell to -9.7 vs. the forecast of -8.15 and at the previous value of -8.80. The Euro zone published Manufacturing PMI 51,4 against the forecasted 51,3 and Services PMI 54,0 against the forecasted 53,3 from Markit. In Germany these data came in at the level of 50,4 against the forecasted 50,8 and 55,5 against the forecasted 55,0. Economic Sentiment in Germany from ZEW came in at 4.3 versus the forecast of 5.0.

The first support lies at 1.1150 and then at 1.1050. The first resistance stands at 1.1260, the next one is at 1.1350.

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen showы a horizontal movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

If the price falls it will get to 1.1150 and 1.1050. The upward bounce potential targets are 1.1260, 1.1350.