31, August 2015

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

There was again the Germany and the US negative bond yields which makes investments in the US assets attractive. Investors are studying the Germany inflation data. The CPI increased to 0,0% from 0,2% that was earlier.

The euro corrective decrease reached the strong support level of 1.1260 that was broken downwards. The small rebound upwards was formed. The resistance level of 1.1260retesting was followed by the rebound downwards.

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 1.1420.

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 and form a “Dead Cross”. 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

If the price fixates below the support 1.1150, it may continue the downward trend in the short term. The potential targets are 1.1050 and 1.0925.