31, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The single European currency hasn’t been changed. The euro fell down at every front amid the ECB will be forced to take an additional measure to mitigate its monetary policy to prevent the deflation threat. The Euro zone economic data did not carry any information that could support the European currency bloc.

The support is in the area 1.3710. The first resistance is 1.3760, the next one - 1.3800.

There is a strong southern movement. The price is below the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen is directed down and the Kijun-Sen is horizontal.

MACD histogram is still in negative area showing a sell signal.

Trading recommendations

We expect a corrective pullback to the resistance level 1.3760. We expect the consolidation at 1.3760 with a possible false retest.
If today's buyers aren’t able to break above 1.3760, the rebound to the support level 1.3710 - 1.3690 may happen.