04, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Analysis of the Forex market for July 4th shows that the price is in the downward trend now. The current sell signal is strong and confirmed as Chinkou span is below the price and the price is below the Ichimoku cloud. The pair is being corrected to 1.3000.

If the price returns to a downward movement it will go to 1.2900. The downward movement is maintained as long as the price is below the Kijun-Sen.

Chinkou Span is below the price that is a confirmation of the current sell signal.

Bollinger Bands show a continuation of the downward movement.
MACD is in a negative area, indicating the current downward movement.

Trading Recommendations

The pair failed to break through the 1.3040-1.3080 level and fell below 1.3000. Now, if it takes a sustainable hold in this area, further fall is expected to reach the medium-term supports at around 1.2795, 1.2745 and 1.2660.

To return to the positive scenario a pair has to grow above 1.3000, and then overcome the 1.3040-1.3080 barrier, which now will act as a resistance. This is the only case when the resumption of growth in the direction of 1.3415 (current maximum) is possible.