02, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Analysis of the Forex market for July 2nd shows that the price is in the downward trend now. 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

The pair still has the possibility to remain above 1.3000. We expect new attempts to return back above 1.3040-1.3080.

If there is a sustained break and consolidation above this area, the upside risks to the current maximum, fixed at the level of 1.3415 will be intensified.

Otherwise, it is likely to see another attempt to consolidate below 1.3000, which, if it is successful, will show a fall in the direction of supports in the areas 1.2900, 1.2795, 1.2745 and 1.2660.’