23, October 2015

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The euro fell by 1.8% when Draghi said that the ECB could launch the easing monetary policy this year. The ECB on Thursday left. The ECB did not change the interest rates, as we expected.

The pair lost about 200 pp during yesterday’s European session. The pair fell from 1.1330 to 1.1130 where it finished the day.

The first support is at the level of 1.1050, the second one is at the level of 1.0925. The resistance is at the levels of 1.1150 and 1.1260.

We have a strong and confirmed sell signal. The price broke the Ichimoku Cloud through having stopped deep below it. The pair is under the Chinkou Span. The Tenkan-sen is crossing Kijun-sen downwards; two lines are forming the “Dead Cross”.

The MACD indicator is in a negative territory. The histogram is decreasing.

Trading recommendations

The pair is likely to go to the support of 1.1050 soon. After a sharp decline we expect a short-term bounce up to 1.1150.