07, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro was traded versus the US dollar yesterday in a narrow corridor till jumped up in the second half of the day. The pair finished the session in plus at 1.3600.

There is a southern movement at the market. 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 positive area, the histogram is growing.

Trading recommendations

The price was in the area of the strong level 1.3540 till yesterdays’ noon when it suddenly jumped up to 1.3600. We believe the price to continue going down and will return to 1.3540 soon.