01, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Analysis of the Forex market for July 1st shows that the price returned to the downward trend. The current sell signal is strong and confirmed as Chinkou span is below the price and the price is below the Ichimoku cloud. The first target of the downward movement is the support level 1.3000.

If the price breaks this target the downward movement may proceed to the next support level 1.2900. The downward movement is maintained as long as the price is below the Kijun-Sen.

Chinkou Span is below the price that is a confirmation of the current sell signal.

Bollinger Bands show a continuation of the downward movement.
MACD is in a negative area, indicating the current downward movement.

Trading Recommendations

As long as we receive the negative news the cost of a European currency will fall. The U.S. dollar continues its triumphant march to world currencies. The dollar depends on the U.S. economy positive statistics.

We expect the downward movement to continue to 1.2900. It is better to sell when the price rebounds from the level 1.2990.