01, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

German inflation unexpectedly held steady in July, the highest level in five months.
German consumer price index rose by 1.9 percent compared with the previous year, said the Federal Statistics Office in Wiesbaden. This exceeds the forecasts of economists slowing down to 1.8 percent. Prices grew at 0.4 per cent in June.

The upward movement is continued as long as the price is above the Kijun-Sen.

Chinkou Span is below the price that is a confirmation of the current buy signal. The Kijun-Sen and Tenkan-Sen are directed upwards. The Cloud is growing.

Bollinger Bands indicator shows an upward movement. The bands are narrowed.
MACD is in a positive area, indicating the current upward movement.

Trading Recommendations

Continuation of the movement to the top is expected after the breakdown of 1.3310, in this case the target is 1.3371, we expect the price consolidation near this level. The break of 1.3375 should be accompanied by an upward trend; in this case the target is 1.3483.

The potential value for the top is considered 1.3543 at which pullback is expected to bottom. Short-term downward movement is possible in the hallway of 1.3204 - 1.3170, the break of the latter will lead to a deeper movement, the target is 1.3095.