28, October 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Yesterday the credit markets German 10-year government bond yields rose up relative to their USA and the UK counterparts which is a positive factor for the single European currency. The world leading stock markets showed a moderate correction movement. The US statistics was in the focus yesterday. The durable goods orders pleased traders with the positive data. The labor market upward trend contributes to the household spending increase. The September car sales increased in the domestic market.

The pair euro/dollar tends to decrease. The attempts to form a low bottom are expected.

The first support is at the level of 1.0925. The resistance levels are 1.1050 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

If the pair keeps growing it will reach the resistance – 1.1050, the second growth target is the level of 1.1150. Shall the pair fall the target will be the level 1.0925.