04, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

America is going to publish data on the ISM manufacturing index for October. In September, the indicator showed the maximum values since April 2011. Now the decline of the indicator by 0.9 is expected. If the result is worse than expected we can expect a short-term growth in the euro/dollar. The level 1.3645 will serve as a resistance.

The bears dominate on the market. The pair is in a bullish trend. Chinkou Span is above the price, and the price is fixed below the Ichimoku cloud, the sell signal is strong and confirmed. Tenkan-Sen and Kijun-sen are durected down. The Cloud is falling.

The downward movement will remain until the Kijun-sen is located above the price.

Bollinger Bands indicator shows a continuation of the present movement. The bands are widening, being directed downwards.
The MACD histogram is in a negative area, its volumes are growing.

Trading recommendations

The pair was falling the whole last week. We expect its consolidation or even a bounce up this one. The pair may return back to 1.3535 or even 1.36. Should the decline be continued the pair may go further to 1.3416 and 1.33.