06, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The ECB has not made changes in the benchmark interest rate, and left at 0.5 percent, was not adopted any additional non-standard measures of liquidity. Mr. Draghi announced that the remainder of the year, and in 2014, probably phased recovery in economic activity.

The data on employment in the United States, which was weaker than expected on Friday were able to push down the yield of Treasury bonds and the U.S. dollar as the market is more cautious due to the likely continuation of the federal economic stimulus program. Obviously, the chances of narrowing down in September, and the market at the moment thinks that December is the most likely date for the Fed to start acting.

The upward movement is continued as long as the price is above the Kijun-Sen.

The price broke the Cloud up. Chinkou Span is below as the result the sell signal weakened. The Kijun-Sen and Tenkan-Sen are horizontal. The Cloud keeps growing.

Bollinger Bands began expanding, the lines form a side corridor.
Histogram MACD is around zero line.

Trading Recommendations

It is obvious that there will be a further consolidation in the 1.3202/1.3302 area in the next few days.

The test 1.3402 might not surprise, as it would not surprise twist to the downside.

After an exhausting upward momentum it is still likely that the pair to fall.
We advise to sell below 1.3352 to 1.3002.
As an alternative scenario: the breakdown of the level 1.3352 will give the price force to go to the level 1.3402.