01, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Marc Chandler, the head of global currency strategy at BBH, expects that the deterioration in the political and economic fronts, must potentially support the EUR/USD.

EUR/USD remained in a range below 1.3568 high before last week. It is still limited by this resistance. Initial bias remains neutral for the week. Breakthrough of 1.3568 will resume recent rally and should target the pair to 1.3710. On the other hand, below 1.3461 minor support there will be a bias to the downside and it will bring deeper retreat. But overall, the tone remains bullish as long as 1.3325 minor support holds.

The current buy signal is confirmed and strong as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud. Kijun-Sen and Tenkan-sen lines maintain the upward crossing of the "golden cross". The Kijun-Sen and Tenkan-sen began to unfold horizontally.The market is experiencing "bullish parade of lines". The Cloud is growing.

Bollinger Bands shows a formation of a new bullish wave showing a small burst of activity in the market and changed its direction to upward.
MACD indicator is slowing approaching the zero line.

Trading recommendations

So that the price could approach the upper boundary of the channel it needs a break above 1.3510. In this case the target will be the level resistance 1.3550, we can expect it to bounce up to 1.3510 from this level.