04, September 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The gap in the income between corporate finance of the USA and Europe is on a "unprecedented" 25 years maximum, according to UBS which predicts that the profit in Europe will be restored to pre-crisis level within three years.

The profit on the stock (EPS) for the European companies is 25 percent lower than the peak in 2007 while in the USA it is 20 percent higher the peak of 2007.

The market pushed off EUR/USD lower than 1.3200 that testifies the return to area 1.3140 and then 1.3100. 200 – the day average is on 1.3145. If the price closes lower, it will increase bear tendencies. The closest level of the resistance is at the level 1.3260.

According to the Ichimoku the pair is located in the medium uptrend on the daily chart. The pair is falling. The EUR/USD broke the Ichimoku cloud came down. Tenkan -Sen and Kijun -Sen are directed downwards. Tenkan -sen is below the price. The cloud is going down.

Bollinger bands are directed down broadening.
The MACD histogram is located in a negative zone.

Trading recommendations

If "eurobears" push the pair lower than 1.3150 new speculators can join the market and the euro can fall quickly enough to the range 1.3050 – 1.3000. It is possible an intermediate correctional restoration of the pair to the area 1.3280.