02, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

As we thought the Federal Reserve decided to leave the key rates unchanged at 0.0-0.25% and a program for the assets buying. The Fed said that inflation has not changed and remained below the 2% target, which may cause a risk to the economy and will be a prerequisite to reduce or expand the program of assets purchase.

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

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

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

Trading Recommendations

Continuation of the upward movement is expected after the breakdown of 1.3300, the price will go to 1.3371 in this case, we expect the consolidation near of this level.

Short-term downward movement is possible in the corridor 1.3204 - 1.3170, the break of the latter will lead the price to a deeper movement, 1.3095 is the target here, this level is a key support for the ascending structure, and its breakdown will favor the downward trend in the potential target - 1.2982.