26, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The European Central Bank head supported the idea of the euro further weakening his statements. Draghi’s speech was "dovish". He said that the ECB June easing measures should spur the demand, a weaker euro would support the economy and the European regulator was ready to the policy further softening if necessary.

The price three-week consolidation above the strong support level of 1.3360 was followed by a confirmed breakthrough. The sellers managed not only to break below 1.3360, but also to consolidate under the resistance level of 1.3290. The price updated the current month minimums on the increased volume during the President Draghi’s speech.

The price is finding the support at 1.3170. The price is finding the first resistance at 1.3230, the next one is at 1.3290.

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 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 fixing.

Trading recommendations

The downward movement will be continued. The pair may go to 1.3170 soon.