01, February 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General picture

Forex market analysis shows that the price has worked out the second resistance level 1.3615, if it consolidates above it the upward movement will be continued. The current buy signal is confirmed and strong as Chinkou Span entrenched above the price chart and the price is above Ichimoku cloud.

At the moment, the goal of the upward movement is the second resistance level 1.3615, which has been reached but has not been overcome yet. When the price overcomes this level its next target will become the third resistance level 1.3751. The upward movement is maintained as long as the price is above Kijun-sen (1.3520), if the price fixes below this level that would weaken the current buy signal and would question the further upward movement. In this case the price will start moving to Ichimoku cloud.

Chinkou Span is above the price chart that confirms the current signal and the bullish mood of traders.

Bollinger Bands show an upward movement, the bands continue to expand and go upwards, so now you should consider opening long positions.

MACD is directed upward, indicating that the current uptrend is renewed. If MACD turns down that may become a signal of a possible correction movement. The same happens if the price rebounds from 1.3615 level.

Trading recommendations

It is recommended to go long with the first target 1.3615. After overcoming this target the road to the next level (1.3751) will be open.

You’d better place stop loss below Kijun-Sen and 1.3520. When the price start growing you will move stop loss up after it.

When you get profit of 50 - 60 points you can put stop loss to breakeven zone. Orders can be closed manually if MACD turns down or the price bounces from the level 1.3615.

It is better to place take profit slightly below our targets – 1.3610 and 1.3740.