27, February 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro sharply fell at the end of the trades. Earlier the pair euro/dollar was supported by the negative attitude towards the dollar and demand for the single European currency within the growing euro/yen amid the risk aversion weakening on the market. The euro growth potential is limited by the ECB large-scale quantitative easing program and the euro sales.

The pair was growing from the support level of 1.1300 amid the low volumes. Nevertheless the pair could not continue the growth and sharply decreased.

The price is finding the first support at 1.1170, the next one is at 1.1040. The price is finding the first resistance at 1.1300, the next one is at 1.1400.

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 and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The approach to the level of 1.1300 may lead to a price rebound down. The potential rebound targets are the support level of 1.1170.