30, July 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The Euro stayed almost unchanged against the U.S. dollar and ended the session a bit below it had started the day. Obviously, the negative sentiment is caused by the additional easing expectations from the ECB that still fly in the area. The Eurozone did not release any significant news. We can mention only the Italy manufacturing sector confidence index in which fell to 99.7 in July against 99.9 in June, and made no impression on investors. The euro has been dropping down for the fifth week. The short-term consolidation development was replaced by the continuing downward trend which in its turn wasn’t supported by the trade volumes.

The price is finding the support at 1.3360. The price is finding the first resistance at 1.3420, the next one is at 1.3480.

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 decreasing.

Trading recommendations

The short-term consolidation below the resistance level of 1.3420 can be followed by the price bounce down. The potential target is the mark of 1.3360.