28, January 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

We expect the pair EUR/GBP growth amid the UK 4th quarter weak GDP report which in turn will have a positive impact on the pair euro/dollar. While the US durable goods orders release can come out worse than the forecasted medians.

We should not rely on the euro strong growth in terms of deflation and increased political risks that are coming from Greece.

The mark of 1.1170 was the starting point for the upward correction which is not supported by the trade volumes now.

The price is finding the first support at 1.1300, the next one is at 1.1170. The price is finding the first resistance at 1.1400, the next one is at 1.1520.

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 shows an upward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The potential growth target is the resistance level of 1.1520. Having tested this target the price might go downwards to 1.1300.