04, February 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General Overview

The Euro was correcting yesterday versus the dollar. News from the Euro zone, published on Friday, increased the pressure on the pair.

The pair was below the support 1.3550–1.3660 that opened the way for a further reduction to 1.3430. Its overcoming and consolidation below point to a further decline to support 1.3295 or 1.3100.

We have a southern movement now. The sell signal is confirmed and strong. The price is traded below the cloud and above the Chinkou Span.

The downward movement will be until the Kijun-Sen is above the price. Kijun-Sen and Tenkan-Sen are directed downwards.

Bollinger Bands is broadening being directed down.
MACD is in a negative area, the histogram is descending.

Trading recommendations

The basic signals show sales. It is likely that the beginning of the week will be accompanied by a correctional growth to the resistance level 1.3530. Forming a consolidation in this area may lead to a rebound downward. The nearest bounce target is 1.3400.