24, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro has strengthened against the greenback. The impulse for buying euro was received by the U.S. central bank after its meeting results that had upset the "bulls" with the lack of any inflexibility. However, euro was again under pressure, probably in addition to technical factors it can be explained by the lack of a confidence in the sustainable single currency after the ECB took a course on easing policy and regularly reminds the market that the incentive measures are real in the near future.

For the second time buyers were able to break above the strong resistance level of 1.3590. The first level breakthrough was stopped by the descending trend line 1.3640. After the second breakdown, the buyers may test the trend line again.

The price is finding the first support at 1.3570, the next one is at 1.3520 . The price is finding the first resistance at 1.3610, the next one is at 1.3670. The price is in the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen. The MACD indicator is in the positive territory.

Trading recommendations

The volumes are in the downgrade zone. Apparently, another approach to the trend line 1.3630 would lead to the price bounce downward. The bounce potential target will be performed by the support level of 1.3590, which is located in the uplink lower boundary.