26, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The attitude towards the euro was cold, so the European currency was under pressure from the dollar by the end of Friday's session and was on the local marked minima that showed the dollar/yen the day before. Obviously, pessimistic investors are all have the same expectations from the ECB tapering in the coming June, coupled with economy data which could be described rather as weak. The first May evaluation business activity indicators showed a Eurozone decrease.

The price is finding the support at 1.3610. The price is finding the first resistance at 1.3670, the next one is at 1.3710.

There is a confirmed and weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The downtrend movement will be until the price is under the Kijun-Sen.

The MACD indicator is in negative territory.

Trading recommendations

The inclined support line 1.3630 - 1.3625 that is on downward price way can become an obstacle where the price can bounce up.

If buyers are able to break above the mark 1.3610,we can expect the pair to test 1.3687 - 1.3700 soon.