25, September 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The single currency remained under a pressure after the latest data showed that the private sector business activity has grown slowly in September, raising expectations of additional stimulus by the European Central Bank.

The EUR corrective increase to the level of 1.2905 was followed by a short-term bounce rate down. The price has continued to decline without volumes.

The price is finding the support at 1.2730. The price is finding the first resistance at 1.2850, the next one is at 1.2930.

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 decreasing.

Trading recommendations

The pair can fall to the support level of 1.2790. After breaking 1.2790 the pair may go to 1.2730.