08, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Analysis of the Forex market for July 8th shows that the price is in the downward trend now. The current sell signal is strong and confirmed as Chinkou span is below the price and the price is below the Ichimoku cloud. The pair continues falling having fell after Mario Draghi’s speech.

The price testes 1.2828 Friday we expect it to work out this level soon. The downward movement is maintained as long as the price is below the Kijun-Sen.

Chinkou Span is below the price that is a confirmation of the current sell signal. The Kijun-Sen and Tenkan-Sen are directed downwards. Both lines are horizontal. The Cloud is directed downward.

Bollinger Bands show a continuation of the downward movement, its bands are widening.
MACD is in a negative area, indicating the current downward movement.

Trading Recommendations

We expect a short-term downward movement in the area 1.3000-1.2900. If the level 1.2900 is broken, we believe the pair to move to the area 1.2800 from which it can bounce back to the top.