26, May 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The market took positively the US dollar inflation release. The Core CPI index rose up by 0.1% to 1.8% on the annual basis while the CPI came out as it was expected in the negative area -0.2%. The US Treasury bond yields have increased that point out to the expectations about the Fed monetary policy changes.

After two days consolidation below the resistance level of 1.1150 the downward trend has been continued. Sellers have broken through and consolidated below the level of 1.1050 amid the high volume.

The price is finding the first support at 1.0925, the next one is 1.0790. The price is finding the first resistance at 1.1050, the next one is at 1.1150.

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 shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

The potential decrease targets are two levels of support: 1.0925, 1.0790.