10, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Running through standard Ichimoku check-lists we can see that the price is below the Kijun-Sen and Ichimoku cloud, having formed a new sell signal - "dead cross". The current sell signal is weak and confirmed as Chinkou Span is below the price and the price is below the Ichimoku cloud.

At the moment, to the downward movement is targeted to the first support level 1.3000. If the price consolidates at this target the downward movement will continue to the second support level 1.2940.

We can say about the upward movement if the price penetrates the Kijun-Sen and leaves the Cloud. Should the price turn back and grow that will cancel "a dead cross".

Chinkou Span is below the price, which confirms the current sell signal and indicates bearisg sentiment of traders.

Bollinger bands show the upward movement, the bands widen and directed upward.
MACD is in a positive zone but going down.

Trading recommendations

We believe that the upward movement will continue. We recommend going long from the level 1.3210 with stop orders at the 1.3185 to 1.3305 and -1.3350.

Should the price continue falling the pair can reach the level 1.3045-1.3000.