27, October 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The Germany IFO institute business climate data were published yesterday. Traders expected business climate index to be 107,8 in fact it was 108.2. This indicator is closely correlating with the economic growth pace and is always closely monitored by traders. The industrial sector slight slowdown is offset by the service sector growth. Population revenues are noticeably increasing, the unemployment and mortgage rates are decreasing. These are ideal conditions for the construction sector. The September secondary housing market sales rose up by 5.7% compared with August.

The first support is at the level of 1.0925, the next one is at 1.0790. The resistance levels are 1.1150 and 1.1150.

We have a strong and confirmed sell signal. The price is below the Ichimoku Cloud. The pair is under the Chinkou Span. The Tenkan-sen is crossing Kijun-sen downwards; two lines are forming the “Dead Cross”. The pair will show the southern movement until it is below the Cloud.

The MACD indicator is in a negative territory. The histogram is decreasing.

Trading recommendations

The pair rebounded from the Friday’s low yesterday. The EUR/USD reached the first resistance at the level 1.1050. If the pair keeps growing it will fly straight to the resistance – 1.1150. Shall the pair fall the target will be the level 1.0925.