24, April 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

After the last week low mark 1.3790 was updated we had a short pullback up. The price is directed to the downtrend channel upper bound line 1.3825 where the price is approaching at decreased volumes.

We expect the channel upper boundary line 1.3825 retest after the fundamental data EUR (PMI , manufacturing activity index) is released. If the upper channel retest fails we expect the downward trend continuation.

MACD is still located in the negative zone, the indicator continues to grow smoothly showing a buy signal.

Trading recommendations

The downtrend potential target is the support level 1.3760. This level break will open the way down to 1.3700 - 1.3690.