07, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Eurozone business activity continued to slow down. It was reported about the death of the president of Venezuela, Hugo Chavez, yesterday. Still both these events had no effect on the pair. The market is waiting for Thursday when a meeting of the ECB regarding interest rates will be held.

The correction is over. The pair continued its downward movement. Euro penetrated the strong level 1.3000 having stopped at 1.2966 (Bottom of Bollinger Bands) and returned back to 1.3000 during the Asian session.

The sell signal is strong and confirmed. The Chinkou Span is below the price, the pair is trading below the Ichimoku cloud. The northern movement will continue as long as the price is below the Kijun-Sen (1.3031). The trend looks bearish.

The level 1.2940 became the first target. Should the pair consolidate at it the downtrend will be continue to the level 1.2895.

The Chinkou Span is below the price chart, the Kijun-Sen is directed down. All this support the bearish idea of the market.

Bollinger Bands started broadening that puts an end a correction.
MACD confirms the downward movement.

Trading recommendations

In general the downward trend continues.

Short term forecast is to go short. The first target is 1.2940. Should the pair overcome this level the price will go to 1.2895.

When opening orders you should consider the fundamental news and the time of its release.