23, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

At the beginning of Thursday's euro continued the growth against the U.S. dollar in the light of the latest news from the Fed which disappointed investors who expected a more firm attitude regarding the monetary policy. However, towards the end of the day, the single currency lost some positions in the light of the U.S. economy good statistics. The loss could be provoked by the ECB's statements about the Institute readiness together with other major Central Banks to start, if necessary, the assets purchase in order to avoid the low inflation long period.

The strong resistance level breakthrough 1.3600 led to the euro strengthening against the U.S. dollar.

The price is finding the first support at 1.3570, the next one is at 1.3520. The price is finding the first resistance at 1.3610, the next one is at 1.3670.

The price is in the Cloud and it is above the Chinkou Span. The downward movement will be until the price is under the Kijun-Sen.

The MACD indicator is in a positive territory.

Trading recommendations

It is likely to expect the downward trend formation in the longer term from the down channel resistance 1.3635.

The bounce from 1.3635 will allow sellers to return to a strong support level of 1.3600. This level break will open the way down to 1.3520.