09, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The data about the rapid growth of industrial production in the Federal Republic of Germany (West Germany) allowed the euro to grow. The European economy is beginning to recover from the crisis. For the euro as the currency this data can promise a good trading autumn and the beginning of the new fiscal season, in September, the euro may show good growth relative to the U.S. currency.

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 bars form a side corridor.
The MACD histogram is still located in the positive zone, slightly above its signal line. The indicator continues to grow gradually.

Trading recommendations

The pair continues a gradual growth, and it may test 1.3415 in the short term. That will open the way to overcome the upward trend to a maximum 1.3710.

At the same time, there is a possibility of a trend reversal on the way to 1.3415. In this case, the pair can fall to the 1.3090-1.3160 support area or to a mark 1.3000. However, the further development of the downward trend in the direction of supports 1.2745 and 1.2660 is possible after consolidation below 1.3000.