24, November 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro was consolidating near the 25th figure, but it sharply fell amid the ECB chief’s speech. Earlier in the absence of any important macroeconomic statistics it is difficult to expect high volatility within the major pairs. Even despite the negative France and Germany PMI the euro did not fall below 25th figure, indicating the traders’ reluctance to increase shorts. The bond market spreads also show the neutral background.

The situation within the euro/dollar changed. The pair closed the week below the trend line 1.2400.

The price is finding the first support at 1.2300, the next one is at 1.2200. The price is finding the first resistance at 1.2500, the next one is at 1.2600.

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 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

When the price consolidates below the level of 1.2400 it may go to the level of 1.2300.