29, May 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Nearly the whole week the euro finishes the trades in the "red zone". The pair slightly corrected yesterday however currently there are no factors that are capable to change the negative trend. The debt market dynamics is now clearly on the bears’ side. The German bond yields are declining relative to the US and the UK counterparts.

The downward trend was developing within the euro amid the increased volume that indicates that sellers are interested to reduce the price in the short term. Nevertheless the pair slightly increased.

The price is finding the first support at 1.0925, the next one is 1.0790. The price is finding the first resistance at 1.1050, the next one is at 1.1150.

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 downward 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 approach to the level of 1.1050 may lead to a price rebound down. The potential rebound targets are the support levels of 1.1170, 1.1040.