04, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The U.S. dollar started the week with not very positive dynamics after U.S. stocks closed in the negative and the released data on the personal costs and benefits on Friday fell short of expectations. The Chicago Project Management Institute, however, was at 58.7, thus surpassing all possible forecasts. The index of the dollar on Friday before the resistance was on the level correction 83.57, after that, against the background of poor economic statistics fell.

Now the price is above the Chinkou-span, the sell signal is canceled, we have a strong and confirmed buy signal. EURUSD broke the Ichimoku cloud through and is being traded above it. The pair is above the Kijun and Tenkan, the Ichimoku cloud is directed upward.

Kijun-Sen and Tenkan-sen follow the price up, both lines are vertical.

Bollinger bands began to expand.
MACD is now in positive area, the indicator is growing.

Trading recommendations

The pair continues growing. The first goal of the upward movement is 1.3090. The price just tested this level yesterday. To continue the growth the pair needs to consolidate on it, this will open the way to the level 1.3150.

It might be a correctional movement down but the pair will not go below the middle Bollinger Bands line.