29, October 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview


The Federal Open Market Committee statement (FOMC Statement) was expected with moderately aggressive tone, despite the weak economic reports for the last two weeks. The German GfK consumer confidence index was expected to decrease from 9.6 to 9.5 in September. Traders expected the September imports prices at 0.2% after 1.5% in August.

The Fed left the rates unchanged. Still the regulator may change the rate this December. The rate change will depend on the November meeting results.  


The short-term correction from the support level of 1.1050 turned downwards. Sellers broke the level and fell further.


The first support is at the level of 1.0870, the next one is at 1.0830. The resistance levels are 1.0925 and 1.1050.


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 growing.


Trading recommendations


If the pair grows it will reach the resistance – 1.0925. Still we do not believe in a growth right now. We presume that the pair will keep falling after yesterday’s Fed meeting. The targets are 1.0870 and 1.0830.