04, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Euro wins some positions due to shutdown of the U.S. government while Congress remains at an impasse having not come to an agreement on the federal budget.
Yesterday the euro zone piblished industry data on retail sales, while Spain and Italy published data on activity in the services sector. Markets in Germany were closed for a national holiday.

The euro rose to a fresh eight -month high against the dollar, its highest level since early February. The pair was likely to find support at 1.3503, yesterday's low and resistance at 1.3658, the high of February 4 and the maximum of 1.3711 on February 1.

The ratio of buyers/sellers indicates a movement in the direction of long positions and climb to higher levels.

The current buy signal is strong and confirmed as the trend line Chinkou Span is above the price and the Ichimoku cloud below the price.

The current buy signal is confirmed and strong as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud. Kijun-Sen and Tenkan-sen lines maintain the upward crossing of the "golden cross". The Kijun-Sen and Tenkan-sen are directed upwards.The market is experiencing "bullish parade of lines". The Cloud is growing.

Bollinger bands show an upward movement, the bands widen and face up.
MACD is turned up indicating the current uptrend.

Trading recommendations

The immediate potential with a possible rebound is the support level 1.3580. The break above 1.3580 down in the short term will open the way to 1.3550 - 1.3530.