27, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

In the first half of the trading the euro went under the sufficient pressure. The euro selling provoked a weak data on the German economy, and the statements of a several ECB members about the need to take measures to limit the deflation risks. The statements of J. Weidmann, who is still the head of the Bundesbank that the negative interest rates are an adequate measure had a special impact on the single currency. This kind of rhetoric could demonstrate that the largest economy in the EU is unhappy with the European bloc high rate currency.

The support is 1.3760. The first resistance is 1.3800, the next one is 1.3860.

There is a strong southern movement. The price is below the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen and the Kijun-Sen are horizontal.

MACD histogram is still in negative area showing a signal to buy the euro (EUR).

Trading recommendations

Another rising trend line retest 1.3780 is more likely to be accompanied by a rebound of the price upwards. The main target of the rebound will be the resistance level 1.3860.