07, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The single currency showed growth in the European trading session on the eve of the EBTS meeting on rates. Now, this result is known: the Bank of Europe has not changed the refinancing rate and kept at the same level of the deposit rate. This result was widely expected by market players.

The pair is currently being traded around the resistance 1.3250, taking advantage of a serious demand.

The price is above the Chinkou-span, we have a strong and confirmed buy signal. EUR/USD is being traded above the Ichimoku cloud. The pair is above the Kijun and Tenkan, the Ichimoku cloud is directed upward.

Kijun-Sen and Tenkan-sen follow the price up, both lines are vertical.

Bollinger Bands are broadening
MACD is now in positive area, the indicator is growing. MACD indicates that pair is overbought.

Trading recommendations

The pair reached a maximum where it was on February 25. ECB President Draghi's speech supported euro.

Yesterday the pair broke 210 points. We believe that today the pair will consolidate. There might be a correction to 1.3150.