06, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Although the news from the Euro zone was within the forecasts the single European currency fell versus the dollar.

A break above the resistance 1.3830 was a short-term and took place amid a sharp liquidity decline during Christmas holidays. Later the pair demonstrated its inability to overcome this mark again that shifts the risks in the direction of the break below nearest strong support 1.3580–1.3625, in the direction of the support 1.3295-1.3365.

The northern movement is canceled. The sell signal is confirmed and strong. The price is 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 directed downwards.

Bollinger Bands shows a change of a course. The bands are turning down. The short positions are relevant now, still we do not have a clear sell signal.

MACD is in a negative area, the histogram is directed downwards.

Trading recommendations

The pair continues falling. Indicators are pointing to the “bearish” mood on the market that offers downfall to the support 1.3570/80. It is possible a growth resumption from 1.3620/30.

Shall the falling be continued the pair will go to 1.3530.