04, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro strengthening was supported by the inflation data which turned out to be better than everyone expected. Euro-zone unemployment rate remained unchanged at 12%, while retail sales in Germany increased in January. The manufacturing and services activity indicators shall be mentioned as well. PMI index for February, according to forecasts, expected to slowdown.

The pair stopped its growth at 1.3800 and stated a correction.

There is a strong northern movement. The price is above the Cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is above the price. The Tenkan-Sen and Kijun-Sen are directed upwards.

Bollinger Bands is directed upwards. The bands are widening.
MACD is in a positive area, the histogram is descending.

Trading recommendations

The next two days the mark 1.3800 will be tested for durability. And if the price does not manage to break it we expect a corrective bounce down to 1.3700 and 1.3670.