06, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The Euro consolidated versus the dollar and closed at opening prices. The news background of the Euro zone gave very little information about the economy though the data was positive, however it was not a positive for the Euro market reaction.

The pair is trading below near 1.3550–1.3660. To continue the growth to 1.3830 and 1.4000 the pair needs to break above 1.3550–1.3660.

We have a southern movement now. The sell signal is confirmed and strong. The price is traded 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 horizontal.

Bollinger Bands is broadening being directed down.
MACD is in a negative area, the histogram is growing.

Trading recommendations

In the first half of the trading day the retest 1.3530 upward is expected. If there is no breakthrough, the EUR/USD will continue to move downwards. The nearest target is the support level 1.3400.