03, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The northern movement is confirmed and strong. The price is fixed above the cloud and below the Chinkou Span.

The upward movement will be continued until the Kijun-Sen is below the price. Kijun-Sen is horizontal and Tenkan Sen is directed downwards.

Bollinger Bands shows a north movement, its bands are expanded upwards. The long positions are relevant now, but after amplification "golden cross."

The current correction is confirmed by MACD as well which histogram is directed downwards.

Trading recommendations

Indicators show horizontal movement that reflects traders’ uncertainty and the likelihood of neutral trading in a sideways range. The pair is likely to form a sideways correction in the range 1.3800 - 1.3740/50. If the price breaks through the support 1.3740/50, then there will be a very strong signal to buy as this level is the key support with crosshair trendlines.