30, November 2015

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro remained under the downward pressure against the US dollar in anticipation of the upcoming ECB meeting. Investors' expectations regarding the ECB more aggressive the rates easing keep growing ahead of the meeting. Economists predict that the ECB may disappoint the market expectations for the upcoming meeting.

The downward trend may show weakness in the short term. Trades are held below the strong resistance level of 1.0630. While the level is holding back the price growth from the level of 1.0550, the downward trend potential is still preserved.

The price is finding the first support at 1.0550, the next one is 1.0420. The price is finding the first resistance at 1.0630, the next one is at 1.0730.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

The downward movement will be continued. The pair may go to 1.0420 soon.