24, September 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

In the opinion of the central bank governor, the risk balance will be shifted to the weaker growth side if it is necessary, the ECB is ready to take additional measures to stimulate the economy and avoid deflation.

The pair EUR/USD will be consolidated at the support level of 1.2850. The euro/dollar trading is below the resistance level which last week was cut through against the increased volume.

The price is finding the first support at 1.2850, the next one is at 1.2790. The price is finding the first resistance at 1.2930, the next one is at 1.3000.

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 and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

The level of 1.2930 retest may lead to a price rebound down. The bears need to break below 1.2850 for a steady decrease.