29, December 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The US labor market strong data did not make much of an impression on prices. Last week, the initial claims number dropped to 267 thousand. from 272 thousand earlier. Traders expected 270 thousand. There were no important releases from the EU. The overseas economic releases show positive figures, the Fed may accelerate the monetary policy normalization if the current trend is continued.

The first support lies at 1.0925 and then at 1.0800. The first resistance stands at 1.1050, the next one is at 1.1150.

There is a confirmed and a strong buy signal. The price action is above the Cloud and is heading upwards. The Tenkan-sen and the Kijun-sen show an upward movement forming a “Golden Cross”. The upward movement will be until the price is above the Cloud. Ichimoku Cloud is neutral now.

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

The pair could escalate up to 1.1050. Alternatively, we expect the EUR/USD to fall to 1.0925.