27, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The rising trendline 1.3700 and the strong support level 1.3680 were broken down. The 1.3680 breakthrough led to a prolonged upward trend reversal.

We can expect a reversal pattern "double top" forming and testing in the medium term. Still if we take into consideration the low volumes the immediate seller’s goal is the support level 1.3575.

The price is finding the support at 1.3610. The price is finding the first resistance at 1.3670, the next one is at 1.3710.

There is a confirmed and weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The downtrend movement will be until the price is under the Kijun-Sen.

The MACD indicator is in negative territory.

Trading recommendations

If the price approaches the mark 1.3575 at decreasing volumes, we can expect a corrective pullback to the strong resistance level 1.3680.