04, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Euro markedly fell on Monday before the ECB meeting, ISM Manufacturing PMI in the euro zone as a whole were better than expected. The index rose to 51.6 in November from 51.3 in October, slightly exceeding the initial estimates of 51.5. However, PMI of Spain, the fourth euro zone economy - fell below the mark 50 for the first 4 months. PMI of France is below this level, and continues to stay there.

The pair is growing. Chinkou Span is below the price, and the price is above the Ichimoku cloud. We have a strong buy signal. Tenkan-Sen and Kijun-sen are following the pair up, both lines are horizontal. The Cloud is growing.

The upward movement remains as long as the Kijun-sen is located below the price.

Bollinger bands are directed upwards. The bands are broadening.
MACD histogram is still located in the positive zone, but slightly below its signal line, continues to gradually decline and thus sends a signal to sell the euro.

Trading recommendations

The rebound from the resistance 1.3600 allowed fixing the price below the support level 1.3560. The corrective recovery towards 1.3560 is more likely to end with pull back. The target of the rollback is 1.3490 - 1.3500.