08, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The negative trade balance of the United States in June 2013. decreased compared to the revised value for May 2013. by 22.4% - to 34.22 billion dollars.

Undoubtedly, a good stimulus for the growth of EUR/USD was the release of stronger than expected data from Italy. Q2 GDP showed a reduction of only 0.2% q. / Sq., exceeding the forecast value of -0.4%, and the previous value of -0.6%. This is best quarterly dynamics of Italy economy for the past seven quarters.

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. The price keeps growing.

Bollinger Bands began expanding, the lines form a side corridor which is turning up.
MACD started growing.

Trading recommendations

The pair continues to trade above 1.3200, and its prospects still look positive. In this case, the pair is likely to continue to grow to the resistance 1.3415. Should the pair pass this level that will open the way to a maximum 1.3710.

The immediate strong support is still the area 1.3090-1.3155. The second support is 1.3000. Only the consolidation below this point will confirm the falling to the strong support in the area of 1.2745, in turn, to overcome which will test the key support 1.2660.