30, October 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The current sentiment on the single European currency can hardly be called positive, but the "bears" do not hurry to resume active operations.

We got the disappointing data from France – the consumer confidence in the second eurozone economy fell by one point in October this year. The French consumer confidence index dropped from 86 points to 85 points. The interviewed economists assumed that the rate would remain unchanged at the level of 86 points.

The pair euro/dollar came close to the downward trend line of 1.2730 and fell down.

The price is finding the first support at 1.2670, the next one is at 1.2600. The price is finding the first resistance at 1.2730, the next one is at 1.2790.

There is a non-confirmed and a weak sell signal. The price is under the Cloud and it is below the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

If the price falls below the level of 1.2670 the downward movement will be continued.