10, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The ECB is not too worried about the power of the euro now, although its nominal trade-weighted exchange rate is starting to be overvalued.

In connection with the most important events of the past few weeks, EUR / USD can grow to 1.3710 if the shutdown of the U.S. government continues for a few more days. We can see the vendors above this level especially because speculative accounts are at historically high levels.

Technical perspective of EUR / USD is to get to 1.3682 after breaking through significant resistance 1.3650. The support is at 1.3500 and 1.3460.

The current buy signal is canceled. The pair broke the Ichimoku cloud and is consolidating below of it Tenkan-Sen ans Kijun-Sen and are directed down. The Cloud is neutral now.

Bollinger bands are turning down.
MACD is directed downward, indicating the current correction. The histogram is in a negative area.

Trading recommendations

If the price continues falling it will go to 1.3416. The middle goal is 1.3450.