29, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)


The euro was quietly traded on the low having reached earlier. The euro sales impulse was given by the German IFO institute release which had shown a decrease concerning the trust in business. The support level of 1.3480 was broken down at lower volumes. The level breakthrough was followed by the price fixing. We expect the downward trend to be continued. At this time trades come in the narrow descending channel direction.

The price is finding the support at 1.3420, the next one is at 1.3360. The price is finding the first resistance at 1.3480, the next one is at 1.3520. There is a confirmed and strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show 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 consolidating.

Trading recommendation

The price is likely to go to the downward trend line 1.3360.