08, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The pair is in a downside channel 1.3895 - 1.3575. The negative USA data pushed the growth of the euro. O

The pair is still above 1.3585-1.3627 support, this fact does not exclude that a growth will be resumed to the mark 1.3835. If the pair succeeds that will open the way to the level 1.4005.

If the pair manages to pass 1.3585-1.3627 the downward trend will obviously increase, and the area 1.3297-1.3373 might be tested.

We have a southern movement. The sell signal is confirmed and strong. The price is 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 directed downwards.

Bollinger Bands shows a change of a course. The bands are turning down. The short positions are relevant now.
MACD is in a negative area, the histogram is directed downwards.

Trading recommendations

The bears dominate the market. We advise to open short positions after the pair passes the level 1.3600.