23, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro continues a correction down versus the U.S. dollar, updating the minimum mark 1.3790 last week. The downward movement is still not supported, so strong divergence indicates sellers’ relief power.

The first support is 1.3800, the next one is 1.3760. The first resistance is 1.3860, the next is one 1.3900.

There is a confirmed and weak sell signal. The price is in the Cloud and it is above the Chinkou Span.

The downtrend movement will be until the price is below Kijun-Sen.

The MACD histogram is decreasing. The indicator is in the negative zone.

Trading Recommendations

The pair is trading within a downtrend channel, thus, a new testable trendline 1.3800 - 1.3810, which can happen in the short-term correction. The trend line retest is more likely to cause the price rebound. The level 1.3760 will become the support.