28, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The European currency fell versus the dollar on yesterday's trading and the reason for that became surprisingly strong data on the U.S. economy.

The pair corrected to the nearest support area 1.3625-1.3650. However, while it is trading above it, the risks will remain rising, and we expect the pair back to the growth in the direction of the resistance 1.3830. If the pair takes this level the level 1.4000 testing will follow.

There is a weak northern movement that is almost canceled. The price is in the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen and Kijun-Sen are horizontal.

Bollinger Bands is directed aside. MACD is in a negative area, the histogram is descending.

Trading recommendations

The break of the support level 1.3700 occurred at the growing volume. We have a confident decrease movement.

The main goal for today's trading session will be the intermediate level of support - 1.3670. The breakthrough of the level down will allow the price to fall to the 1.3600, 1.3570.