09, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Euro is keeping consolidating in the price range. Yesterday's statistics showed that unemployment in Germany fell for the first time in five months in December; showing national companies growth of confidence, despite the purchasing power of the population remains restrained.

The situation in the pair did not change. While it is trading above the support 1.3585–1.3620, it is possible to return to the growth to consolidate above the resistance 1.3830. If it is successful, it will pave the way to the level 1.4000 testing.

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 falling continues. The pair is approaching the level 1.3540, which, we believe, will be tested today. After fixing at this level, the possibility of going to 1.3480 grows. The pair has been decreasing for a while without any correction, so we expect it soon. The target of a correction is 1.3600 - 1.3630.