27, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The market opening occurred with a gap (the price break). At the time the gap has not been worked out. The short-term price consolidation above the support level of 1.3170 will lead to the price bounce upwards, followed by the price gap overlap.

The gap closing will allow the buyers to correct the price to the downtrend channel upper bound 1.3230. The downward channel upper bound retest is more likely to be followed by the price bounce downward.

The price is finding the support at 1.3170, the next one is at 1.3130. 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

After the trend line 1.3170 breakthrough down the way to the support 1.3130 will be opened.