03, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The U.S. dollar slightly fell according to the dollar index losing 0.07% and continuing the trend of the previous week: growth versus the yen and the commodity currencies and decline against European currencies. The dollar fell against the British pound (-0.81%) and euro (-0.20%) but stayed almost unchanged versus the Swiss franc. Despite the fact that the conflicting fundamental data do not go to the benefit for the euro, in terms of technical analysis the growth is expected.

The pair is growing. Chinkou Span is below the price, and the price is above the Ichimoku cloud. We have a strong buy signal. Tenkan-Sen and Kijun-sen are following the pair up, both lines are horizontal. The Cloud is growing.

The upward movement remains as long as the Kijun-sen is located below the price.

Bollinger bands are directed upwards. The bands are broadening.
MACD histogram is still located in the positive zone, but slightly below its signal line, continues to gradually decline and thus sends a signal to sell the euro.

Trading recommendations

We recommend going long from the level 1.3620 for the target 1.3730 and with protective orders at the level 1.3590. Should the pair continue falling the target is 1.3490.