25, February 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro has weakened this week amid concerns that Brexit may impact the Eurozone.

According to the ECB representative Mr. Weidmann, the long uncertainty about that topic might affect the global economy. He also said that ignoring the effects of soft monetary policy might become a problem. Weidmann stressed that the economic outlook was not as bad as it seemed. He noted that a low inflation was a problem for the monetary policy and the gradual Eurozone recovery should be continued this year and the next one.

The first support lies at 1.0925 and then at 1.0800. The first resistance stands at 1.1050, the next one is at 1.1150

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows 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 correcting.

Trading recommendations

The pair can grow to the resistance level of 1.1050. After breaking 1.1050 the buyers may go to 1.1150.