25, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro was traded versus the dollar in the sideways correction mode yesterday. However, on a daily basis we can see a small growth. Probably the short-term investors have decided to close a part of a long dollar positions, especially, as the euro/dollar fell down to a fairly strong technical support levels. The European bloc newsflow was weak, but the indicators contained positive results and also could extent the increased interest in the euro.

The first support is 1.3800, the next one - 13760. The first level of resistance is 1.3860, the next one - 1.3925.

There is a strong southern movement. The price is below the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen and the Kijun-Sen are horizontal.

MACD histogram is in the negative area. The indicator is growing, giving a buy signal.

Trading recommendations

The pullback up allowed testing the 1.3800 level. The price can lead to a bounce down with a further continuation of the downward trend. The potential target is the support level 1.3760 - 1.3690.