24, April 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The Germany manufacturing sector business activity moderately positive release can provide some support to the euro. On the other hand, the negative trend on the bond market with oil prices possible decrease because of the US inventories growth may support the bearish sentiment.

Having returned below the trend line of 1.0790, the price decline was followed by the strong support level of 1.0670 testing. The pair rebounded upwards and broke through the resistance level of 1.0790.

The price is finding the first support at 1.0790, the next one is 1.0670. The price is finding the first resistance at 1.0925, the next one is at 1.1050.

There is a non-confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a downward movement. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a neutral territory. The price is growing.

Trading recommendations

We expect the 1.0925 line break that will open the way for the buyers to 1.1050.