07, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

During the morning session, the French PMI came out better than expected and the European single currency could reach the mark 1.33.

Preliminary data on changes in GDP may be good for the U.S. currency support.

Although the growth in non farm payrolls was lower than expected, the overall unemployment rate was still better than expected and reached 7.4% in July, according to a forecast of 7.5%.

The Kijun-Sen and Tenkan-Sen formed a "golden cross". Kijun-sen is directed down, Tenkan-sen is moving up within the cloud. The price is above the cloud.

Bollinger Bands began expanding, the bars form a side corridor.
MACD is around zero histogram.

Trading recommendations

The pair is still being traded above 1.3200, and prospects, as always, look positive. We expect the growth will be continued for the resistance 1.3417. On overcoming this level the way towards 1.3712 will be open.

1.3092-1.3152 area is the nearest strong support. Then 1.3000 level goes. After consolidation lower then this level the pair's outlook will be deteriorated. That will confirm the falling to the strong support in the area of 1.2747. After overcoming this level the price might test the key support level at 1.2662.