26, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Euro showed mixed trading against "greenback". German Ifo Institute published unpleasant data for the euro - in June confidence in the German business community weakened more than everyone expected. During June, the sentiment index was 109.7 points, according the forecast we expected a decline to 110.2 from 110.4 level in May. Taking into the consideration this weak newsflow we believe the pair will not change the positions and will continue trading in a range.

The price is finding the first support at 1.3610, the next one is at 1.3570 . The price is finding the first resistance at 1.3670, the next one is at 1.3710. The price is above the Cloud and it is above the Chinkou Span. The Kijun-Sen is directed upwards. The cloud is directed upward as well. The upward movement will be continued until the price is above the Kijun-Sen. The MACD indicator is in the positive territory. The histogram is growing.

Trading recommendations

We believe the growth will be continued now. The first target is the level 1.3670. We do not exclude the falls to 1.3610.