06, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Tuesday’s diminished geopolitical tensions and improve on this background risk appetite provoked some growth and popularity of the single European currency. However, buying the euro was observed only in early trading last session. Furthermore, the pair euro/dollar came under selling and closed the day in neutral positions.

The first support stands at 1.3720, the second is below 1.3670. The closest resistance is at 1.3760, the next is at 1.3800. Longs are recommended now.

There is a strong northern movement. The price is above the Cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is above the price. The Tenkan-Sen is going down crossing the Kijun-Sen and the Kijun-Sen is directed upwards.

Bollinger Bands indicator is narrowing.
MACD is in a negative area, the histogram is descending.

Trading recommendations

We recommend to go long with the first target 1.3869. If the pair overcomes this mark, long positions will be relevant with the target 1.3936.