01, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The market got a portion of statistics from Germany in the European session. Weak data on changes in the number of unemployed in Germany in September, do not allow to expect a strong growth rate of retail sales.

A strong support level 1.3600 breaking opens the way to the mark 1.3535. If it does not happen we can expect the growth and price reaching a fresh year high.

The bears dominate on the market. The pair has changed the direction and is going down. Chinkou Span is below the price, and the price is below the Ichimoku cloud, the sell signal is strong and confirmed. Tenkan-Sen and Kijun-sen are directed down. The Cloud is falling.

The upward movement will remain until the Kijun-sen is located below the price.

Bollinger Bands indicator shows a continuation of the present movement. The bands are widening, being directed upwards.
The MACD histogram is directed down.

Trading recommendations

The rising trend line 1.3535 will serve as a potential for further decline in the euro against the U.S. dollar. But before that, the price will break through the intermediate support level 1.3600.