26, November 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

We received two releases from the US: the second third quarter GDP assessment and the Conference Board consumer confidence data. As for the first release - the consensus forecast by the leading banks economists from the Wall Street suggests decline by 0.2%, but the positive macroeconomic reports indicate the data output slightly better than the traders’ expectations.

The price reached the level of 1.2400 amid the reduced volume and formed a consolidation there. The price rebounded upwards from this level.

The price is finding the first support at 1.2400, the next one is at 1.2300. The price is finding the first resistance at 1.2500, the next one is at 1.2600.

The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement.

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

Trading recommendations

The potential decrease targets are the support levels: 1.2400, 1.2300.