04, April 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

On the eve of the ECB meeting, good data on the March inflation rate in the Eurozone came. According to the reports the inflation is slowed down and it was able to withdraw from the top of the target level 2%.

Yesterday the head of the European Commission Jose Manuel Barroso said that the largest part of the euro zone debt crisis is over. The situation with Cyprus is also stabilized.

The pair was in an upward movement yesterday the pair has risen to the level 1.2840 and consolidated on it during the day.

The Chinkou Span and Kijun-Sen are below the price chart, the pair is being traded below the Ichimoku cloud.

The key news will be released today, the economic data can give the pair some strength to grow.

Yesterday's trading day ended under the cloud. The further movement of the price depends on the macroeconomic news.

In the case of strengthening euro will go up into the cloud to the level 1.29.

But until that we have a downward trend. The downward movement will be as long as the pair is trading under the cloud. The first goal of the southern movement is the level 1.2760. If the price is fixed at this level, the downward movement will continue to the level 1.2680.

The middle line of the indicator "Bollinger Bands" going up. The price range is fixed.

MACD is turning down. MACD indicates the possibility of opening short positions.

Trading recommendations

In the short term we expect the fall to a local minimum with the possibility to reach the next support level - 1.2680.

An alternative may be the selling after the confirmed breakdown of the next key support levels, for example 1.2760. The second goal is the level 1.2680.

Place a stop loss above the Kijun-sen in the case of a southern movement and below the Kijun-sen, in the case of a north one, respectively. As the price moves we move and stop level after it.

When you open positions consider the fundamental analysis and the time economical news is released.