09, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The pair was traded with a high volatility last Thursday. In the first half of the day the demand for the European currency increased in anticipation of the ECB's key interest rate and Mario Draghi's press conference. The head of the European Central Bank has assured the investors that the basic interest rate would remain unchanged at 0.25%. Draghi words cheered up investors, the demand for the European currency surged anew, giving substantial support and pushing it to the level 1.3650. Even super positive U.S. economic data failed to prevent the growth. U.S. GDP has grown to a level 3.6%; Non-Farm Payrolls dropped to the level 298.000.

EUR/USD keeps growing. Chinkou Span is below the price, and the price is above the Ichimoku cloud. We have a strong buy signal. Tenkan-Sen and Kijun-sen are following the pair up, both lines are directed upwards. The Cloud is growing.

The upward movement remains as long as the Kijun-sen is located below the price.

Bollinger bands are directed upwards. The bands are in a lateral movement changing the direction.
MACD histogram is still located in the positive zone, continuing to grow.

Trading recommendations

We recommend opening buy pending orders from 1.3600 with short stop-losses and with take-profit at the level 1.3750.