23, December 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

We draw our attention to the US real estate sector data. The American consumers have been very confident for the recent months that allows us to count on the secondary market home sales positive release.

The support level of 1.2300 breakthrough was at the low volumes. The pair could fixate under this level and start the corrective movement.

The price is finding the support at 1.2200. The price is finding the first resistance at 1.2300, the next one is at 1.2400.

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 horizontal movement and the Kijun-sen shows a downward movement. 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 pair can grow to the resistance level of 1.2300. After breaking 1.2300 the buyers may go to 1.2400.