10, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The pair broke the support at 1.3590-1.3625 and if it manages to consolidate below, it is likely to increase the downward trend and will eventually lead to testing 1.3295 support or the mark 1.3100. An upward trend reversal is possible from any of these supports while a break below 1.3100 currently seems unlikely.

At the same time if the pair stays above 1.3590-1.3625 area, it will signal the resumption of a growth in order to consolidate above 1.3830 resistance and test mark 1.4000.

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 break through a rising trendline 1.3700 led to the a bearish trend. Yesterday the pair updated the local minimum 1.3570 giving an additional signal to go short.

The break below 1.3550 opens the way to the support level 1.3500.