02, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Forex market analysis shows that the price broke through the Ichimoku cloud and the resistance level 1.3150. There are no signs of the beginning of the corrective movement. The current buy signal is strong and confirmed, as Chinkou span consolidated above the price, and the price is above Ichimoku cloud.

At the moment, to the price is at the resistance level 1.3250. If the price consolidates over that level, the upward movement will continue to 1.3330. The upward movement is maintained as long as the price is above the Kijun-Sen (1.3085). Should the price consolidate below this critical line that would weaken the current buy signal and question the further upward movement.

Bollinger Bands show a continuation of the upward movement, the bands widen and directed upwards.
MACD is directed upward, confirming the current uptrend. If the price consolidates below 1.3150, it can also begin a downward correction.

Trading recommendations

We advise to go long with the first target 1.3250. Should the price overcome this target the price will go to 1.3340.

Stop Loss we place below the Kijun-Sen and 1.3085. After getting profit of 50-60 points stop loss can be moved into a break-even.