08, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

If shutdown of the U.S. government is not solved in the short term, the impact on the traders’ mood assumes the risk of a sharp rally of EUR/USD, according to Richard Yetsenga and Brian Martin, FX Strategists ANZ Research: "The risks associated with the political dynamics in the United States, leads us to the idea that a sharp rally in the EUR is real.
To use this moment, we recommend buying EUR/USD this week with the target at 1.3800.

Technical perspective of EUR / USD is to get to 1.3682 today after breaking through significant resistance 1.3650. The support is at 1.3500 and 1.3460.

The current buy signal is strong and confirmed as the trend line Chinkou Span is above the price and the Ichimoku cloud below the price.

The current buy signal is confirmed and strong as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud. Kijun-Sen and Tenkan-sen lines maintain the upward crossing of the "golden cross". The Kijun-Sen and Tenkan-sen are directed upwards.The market is experiencing "bullish parade of lines". The Cloud is growing.

Bollinger bands show an upward movement; the bands narrow and directed up, we recommend only long positions now. MACD is directed downward, indicating the current correction.

Trading recommendations

The ascending channel where EURUSD has been traded over the past two weeks, is being worked out well. The rebound fell from the top of the bottom edge, where the strong support level 1.3550 is located, was broken through after four attempts.

The nearest target of the fall is 1.3500. The break above 1.3500 will open the way to 1.3470.