28, August 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The single European currency is still the pressure. The euro selling has been resumed that can be caused by the sufficiently strong United States economy data. However, it seems not the only the euro weakening factor, it is possible that the investors are beginning to prepare for the euro zone inflation release which will be published later this week and the forecasts predict the further consumer price index reduction.

The sellers did not manage to break below the support level of 1.3170. The level breakthrough was followed by the relatively weak price reduction continuation amid the lower volumes.

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 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 trend is directed downwards. We expect the level of 1.3170 touching soon.