08, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro rose on the back of positive statistics on Wednesday. Final Services PMI came out 51.6 p in October, exceeding the initial estimates in 50.9 p, although it was lower than the 52.2 p in September. The index was better than expected in Spain, France, Germany - and just in Italy the data came out worse than expected. Final PMI Composite reached 51.9 p, also exceeding the preliminary estimates. Industrial orders in Germany in September rose by 3.3% m/m, well above expectations of growth of 0.5%. At the same time, retail sales in the euro zone fell more than expected in September - by 0.6%, while everyone expected decline by 0.4%.

The bears dominate on the market. The pair is in a bullish trend. Chinkou Span is above the price, and the price is fixed below the Ichimoku cloud, the sell signal is strong and confirmed. Tenkan-Sen and Kijun-sen are directed down, both lines are horizontal. The Cloud is going down as well.

The downward movement remains until the Kijun-sen is located below the price.

Bollinger Bands show a continuation of a southern movement. The bands are narrowing, being directed downwards.
The MACD histogram is in a negative area, its volumes are reducing.

Trading recommendations

The pair fell on the news from Europe. The euro/dollar is at 1.34 now. We are waiting for consolidation and a return to penetrated levels: 1.3416, 1.3491.