09, September 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

After European Central Bank soft comments ADP data poured oil on the flames on employment which came out slightly better than it was expected. The productivity turned out to be much better than it was forecasted, at the same time production orders decreased less, than it was expected. Everyone is waiting for the market reaction to the monthly employment report, for further guidance on the direction of the Fed's actions.

According to the Ichimoku the pair is located in the medium uptrend on the daily chart. Still the pair is falling on the 4 hour time-frame. The EUR/USD broke the Ichimoku cloud down. Tenkan -Sen and Kijun -Sen are directed downwards. Tenkan -sen is below the price. The cloud is directed down.

Bollinger bands are directed down broadening.
The MACD histogram is located in a negative zone.

Trading recommendations

The pair is being traded at the support level 1.3120 which constrains still "not woken up" bears. This level break will open the way to the support level 1.3075. We expect a downward movement if the price breaks 1.3075.