30, September 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The investors’ "risk appetite" decline shall support the demand for the euro as a funding currency. The German government bond yields are declining relative to their US and the UK counterparts. German CPI was expected -0.1% (m/m), but, according to preliminary data, it came out below the forecast 0.2% (m/m) vs. 0.0% (m/m) in the previous month. The index of consumer confidence from the US Conference Board, which everyone expected came out better than expected. Forecast 96.1, in fact turned out to be 103, against 101.3 in the previous month.

North movement for the pair stopped. Bulls attempted to break the level of 1.1260, but the pair pulled back down. However, after the rollback the pair returned to the level of 1.1260. The price was fixed at this level.

The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1325.

The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement and form a “Golden Cross”.

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

Trading recommendations

We expect the 1.1325 line break that will open the way for the buyers to 1.1325, further then towards 1.1410.