07, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Euro-zone’s economic statistics issued yesterday showed the good enough results, what supported the euro. Perhaps in another time it would cause the confident buying the single currency, but at auction on Wednesday was only observed the term positive reaction. Obviously, positive emotions arising extinguished efforts views that the ECB did announce mitigation measures to combat the threat of deflation in the region.

The first support is at 1.3720, below 1.3670. The marks 1.3760, 1.3800 are the resistance levels.

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 broadening showing a high market volatility.
MACD is in a positive area, the histogram is growing.

Trading recommendations

After skyrocketing growth the pair stopped at 1.3860. Thursday news was positive and the pair has big chances to keep growing. We expect Nonfarm Payrolls today, in the case of a favorable release the pair will continue its growth.

Otherwise a consolidation and a light bounce down are expected.