03, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Angela Merkel's last month triumph at the German elections gave the signal for the end of the eurozone debt crisis, although it is far from clear the fate of the European Union, and especially the single currency in the long term.

Soros, the billionaire trader, who became famous when he "broke" the Bank of England by undermining the pound in 1992, has been critical of ads about the victory over Germany's debt crisis. At a conference in Kiel, Germany, he said Merkel's victory showed that Berlin has its way.

The current buy signal is confirmed and strong as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud. Kijun-Sen and Tenkan-sen lines maintain the upward crossing of the "golden cross". The Kijun-Sen and Tenkan-sen are directed upwards.The market is experiencing "bullish parade of lines". The Cloud is growing.

Bollinger Bands points at sideways movement. We should not enter the market until the lateral movement is over. MACD Histogram is turned down indicating that the market is in a lateral movement.

Trading recommendations

We should open long positions after the successful consolidation above 1.3585. Short positions we can open if the price fall below 1.3450.