05, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro has grown up versus the dollar, the euro got the support from manufacturing activity Eurozone which turned out to be better than expected and from weak U.S. data.

The EUR/USD slightly recovered, still it is likely to reach the resistance at 1.3550-1.3660. To continue the growth the pair needs to break through the resistance level 1.3830 and 1.4000.

We have a southern movement now. The sell signal is confirmed and strong. The price is traded below the cloud and above the Chinkou Span.

The downward movement will be until the Kijun-Sen is above the price. Kijun-Sen and Tenkan-Sen are horizontal.

Bollinger Bands is broadening being directed down.
MACD is in a negative area, the histogram is growing.

Trading recommendations

The pair is consolidating around 1.36. The longer the consolidation will be close to that level the stronger will be the rebound down. Today we expect the downward trend to be continued. The potential target is 1.3400.