05, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The European currency grew versus the dollar. Perhaps in anticipation of the ECB meeting the market decided to take strong support of the pair and to correct previous sales. The news from Spain, announced a reduction of Non farm payrolls in October by 2.5 thousand, could support the euro. That news became an unexpected surprise, as the growth was expected.

The pair returned to the resistance range 1.3580-1.3620. The breakthrough and a consolidation above it will point to the growth to the maximum 1.3830 and probably further to 1.4000.

EUR/USD keeps 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 in a lateral movement changing the direction.
MACD histogram is still located in the positive zone, continuing to decrease and thus sending a sell.

Trading recommendations

The chance of a rebound is very high. But before it happens we should expect another retest of 1.3600. Should the price keep falling it may test the strength of the upward trend line 1.3510 - 1.3500.