05, April 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Due to the favorable economic data euro was growing the whole day yesterday.

At the end of the day the Chinkou Span and Kijun-Sen were below the price chart, the pair is being traded above the Ichimoku cloud.

The further movement of the price depends on the macroeconomic news.

In the case of strengthening euro will go to the level 1.2940.

The buy signal is weak. If the price goes down the buy signal will be canceled.

Bollinger Bands lines are directed to different directions. The price range is expanding. We recommend waiting until the situation is clarified.

MACD is going up. MACD indicates the possibility of opening short positions.

Trading recommendations

Experts believe that the producer price index should be on the decline, for this reason the pair can go down to the local minimum and key support level 1.2760.

In case of continued growth the pair will go to 1.2940.

In case of the southern scenario the price will go to 1.2760. The second goal is the level 1.2680.

Place a stop loss above the Kijun-sen in the case of a southern movement and below the Kijun-sen, in the case of a north one, respectively. As the price moves we move and stop level after it.

When you open positions consider the fundamental analysis and the time economical news is released.