10, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Analysis of the Forex market for July 10th shows that the price is in the downward trend now. The current sell signal is strong and confirmed as Chinkou span is below the price and the price is below the Ichimoku cloud.

The price continued falling from 1.2900. The downward movement is maintained as long as the price is below the Kijun-Sen.

Chinkou Span is below the price that is a confirmation of the current sell signal. The Kijun-Sen and Tenkan-Sen are directed downwards. The Kijun-Sen and Tenkan-Sen are directed downwards. The Cloud has a downward formation.

Bollinger Bands show a continuation of the downward movement, its bands are widening.
MACD is in a negative area, indicating the current downward movement.

Trading Recommendations

Corrective recovery in the euro/dollar pair is still possible. The pair managed to hold above the support line located at 1.2793, which is projected from the lows reached in the period from November 2012 until 2013. We believe that the recovery will not affect the downward trend of the pair, while its growth is limited by the area of resistance 1.3061-1.3103.

The first target in a downward movement is 1.2770. The pair just tested this level yesterday. Should the pair break this level it will go to 1.2720.