05, September 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

EUR/USD found buyers before the long-term moving average 200 -dma at 1.3145 and the 100-day moving average at 1.3135 , which supported the pair in the second half of July. EUR kept struggling not to fall below these levels clinging to the economic data and the recent improvement in risk appetite.

The pair broke 1.3200 falling from 1.3400 more than 200 pips. The inability to break through support at 1.3140 after retesting may generate a bullish correction at least to 1.32 and the apparent breakdown of this resistance - to 1.3310.

According to the Ichimoku the pair is located in the medium uptrend on the daily chart. The pair is falling. The EUR/USD broke the Ichimoku cloud came down. Tenkan -Sen and Kijun -Sen are directed downwards. Tenkan -sen is below the price. The cloud is going down.

Bollinger bands are directed down broadening.
The MACD histogram is located in a negative zone.

Trading recommendations

1.3000 is the nearest support level for the euro. If the price is fixed below this mark we do not exclude the possibility of a fall to 1.2795. We recommend to go short from 1.3085 with protective orders in the area 1.3100 and to 1.3125.