06, February 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

After analyzing the market we can see that the price is fixed above the Kidjun-sen and formed a new «dead cross». The current buy signal is confirmed and strong as Chinkou Span is below the price chart and the price is above the Ichimoku cloud.

Now the goal of the upward movement is the resistance level which is 1,3762. If the price fixes above that line an upward movement will continue to the second level 1,3913. The upward movement will be as long as the price is above the Kidjun-sen (1,3585).

The Chinkou Span is below the price chart that is a confirmation of the current buy signal, indicating a bullish mood of traders.

Bollinger Bands shows the upward movement, the bands are extending and heading upwards. We think that short positions are more relevant now.
MACD is down and going up that indicates a renewal of an upward movement.

Trading recommendations

We advise to go long with the first target – 1,3762, but only if the price stays above the Ishimoku cloud.

Stop loss we place below the Kidjun-sen 1,3585 and when this line goes up we move the stop loss after it as well.

When we get profit of 50 - 60 points stop-loss can be moved to a breakeven.

Take-profit can be set slightly below the target levels - 1,3762 and 1,3913.