23, September 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The European and the North American stock markets positive dynamics plays into the bears’ hands as the demand for the "risky assets" has a negative impact on the euro as a funding currency. The bond market trend is also against the euro bulls: the German 10-year government bond yields are declining relative to their US and the UK counterparts which increase the investments attractiveness into the US assets.

The pair slightly corrected at the beginning of the trades. Then the pair sharply fell and the support level of 1.1150 was broken through.

The price is finding the first support at 1.1050, the next one is 1.0925. The price is finding the first resistance at 1.1150, the next one is at 1.1260.

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 and form a “Dead Cross”. 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 downward movement will be continued. The pair may go to 1.1050 soon. Having overcome the first target the price might go downwards to 1.0925.