09, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Analysis of the Forex market for July 9th 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 price testes 1.2825 and bounced back towards 1.2900. 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. The Kijun-Sen is horizontal, Tenkan-Sen is directed downwards. 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

The pair continued to fall and came to the support at around 1.2745-1.2795. In the short term, it will attempt to overcome this area and, if it could that would give a possibility to test 1.2660.

However, the pair is oversold, it looks very likely that the upward trend of the local area will revert from 1.2745-1.2795 and the corrective recovery towards resistance at 1.3030-1.3080 area will be formed.