25, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro was growing against the dollar earlier this week. This growth was triggered by optimism publications from China. However, with the start of the European session, the interest to the single currency was returned and the pair returned to its original positions. In the end, the day was closed on opening prices, and the mistrust to the growth was caused by the low activity in the euro area, that showed a decrease in the leading countries of the EU and the unit as a whole.

ECB is preparing to quantitative easing. ECB official Nowotny said that the recovery in the euro area was weak, inflation would remain significantly below the target level until 2016 - and the ECB was interested in slowing down the strength of the euro.

EURUSD is correcting to a strong support level 1.3570.

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

If sellers break through 1.3570 support down in the longer term the pair will approach 1.3520, then we expect a retest of 1.3500.